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No. 7, Revised September 16, 1908 : United States Internal Revenue 


REGULATIONS AND INSTRUCTIONS 
CONCERNING THE 

Tax on Distilled Spirits 


UNDER THE REVISED STATUTES OF THE 
UNITED STATES AND SUBSEQUENT ACTS 


September 16, 1908 



WASHINGTON 

GOVERNMENT PRINTING OFFICE 
1908 





















/ 


I 


i 

















The substance of Circular No. 723, as modified by Circular No. 72G, 
relative to the marking of packages of distilled spirits on and after 
July 1,1908, has been incorporated in these regulations, notwithstand¬ 
ing the fact that applications for injunctions restraining collectors 
from carrying said regulations into effect are still pending in the 
courts. Should it finally be decided that the provisions of this circu¬ 
lar (723) shall not be carried out, special instructions to that effect 
will be issued to harmonize the regulations with the court decisions. 

( 2 ) 


NO n ls im 

V‘0TQ t 





No. r, Revised September 16, 1!>08. 

REGULATIONS AND INSTRUCTIONS 

CONCERNING THE 

MANUFACTURE, TAXATION, BONDING, SALE, AND EXPORTATION 
OF DISTILLED SPIRITS. 


Treasury Department, 

Office of the Commissioner of Internal Revenue, 

Washington , D. C. September 16 , 1908. 

tax on distilled spirits. 

By the Revised Statutes of the United States, section 3251, as 
amended by section 1, act of March 3, 1875, and as further amended 
by section 48, act of August 28, 1894, it is provided that on and after 
the passage of the said act of August 28, 1894, there shall be levied 
and collected on all distilled spirits in bond at that time, or that have 
been or that may be then or thereafter produced in the United States, 
on which the tax is not paid before that day, a tax of $1.10 on each 
proof gallon, or wine gallon when below proof, and a proportionate 
tax at a like rate on all fractional parts of such proof or wine gallon: 
Provided , That in computing the tax on any package of spirits all 
fractional parts of a gallon less than one-tenth shall be excluded. 

It is also provided in said section that the tax on such spirits shall 
be increased in proportion for any greater strength than the strength 
of proof spirit as defined in section 3249, Revised Statutes. 

The statute as amended levies a tax at the rate of $1.10 upon all dis¬ 
tilled spirits produced on or after August 28, 1894, and upon all 
spirits produced before that day upon which the tax at the previous 
rate of 90 cents had not been paid before said 28th day of August. 

DISTILLED SPIRITS DEFINED. 

Section 3248 of the Revised Statutes defines distilled spirits, spirits, 
alcohol, and alcoholic spirit, within the true intent and meaning of 
the act, to be that substance known as ethyl alcohol, hydrated oxide 
of ethyl, or spirit of wine, which is commonly produced by the fer¬ 
mentation of grain, starch, molasses, or sugar, including all dilutions 

(3) 



4 


and mixtures of this substance, and declares that the tax shall attach 
to this substance as soon as it is in existence as such, whether it be 
subsequently separated as pure or impure spirit, or be immediately, 
or at any subsequent time, transferred into any other substance, 
either in the process of original production or by any subsequent 
process. 

PROOF SFIRIT DEFINED. 

Section 3249, Revised Statutes, provides that proof spirit shall be 
held to be that alcoholic liquor which contains one-half its volume of 
alcohol of a specific gravity of seven thousand nine hundred and 
thirty-nine ten-thousandths (.7939) at 60° Fahrenheit. 

TAX AND ASSESSMENTS TO BE LIENS. 

Section 3251 of the Revised Statutes as amended provides that every 
proprietor or possessor of, and every person in any manner interested 
in the use of, any still, distillery, or distilling apparatus, shall be 
jointly and severally liable for the taxes imposed by law on the dis¬ 
tilled spirits produced therefrom, and that the tax shall be a first lien 
on the spirits distilled, the distillery used for distilling the same, the 
stills, vessels, fixtures, and tools therein, and on the lot or tract of 
land whereon the distillery is situated, together with any building 
thereon, from the time said spirits are in existence as such until the 
tax is paid. 

Section 3309, Revised Statutes, as amended provides that all assess¬ 
ments made thereunder shall be a lien, from the time the assessment 
is made until the same shall have been paid, upon all distilled spirits 
on the distillery premises, the distillery used for distilling the same, 
the stills, vessels, fixtures, and tools therein, the tract of land whereon 
the said distillery is located, and any building thereon. 

DISTILLER DEFINED. 

Section 3247 of the Revised Statutes provides that every person 
who produces distilled spirits, or who brews or makes mash, wort, or 
wash fit for distillation or for the production of spirits, or who, by 
any process of evaporization, separates alcoholic spirit from any fer¬ 
mented substance, or who, making or keeping mash, wort, or wash, has 
also in his possession or use a still, shall be regarded as a distiller. 

The making of fermented liquors or of fermented liquids to be used 
for the manufacture of vinegar exclusively, and the separation, by a 
vaporizing process, of the alcoholic property from a mash and its 
condensation by being introduced into water or other liquid used in 
making vinegar, is permitted by section 3282, Revised Statutes, as 
amended b}^ section 5 of the act of March 1, 1879. 


MANUFACTURERS OF STILLS. 


Subsection 2 of section 3244 of the Revised Statutes as amended 
provides that any person who manufactures any still or worm to be 
used in distilling shall be deemed a manufacturer of stills, and shall 
pay a special tax of $50, and in addition thereto $20 for each still or 
worm for distilling made by him, i. e., $20 for each still and $20 for 
each worm. 

Whenever an old still or worm which has become unfit for use is 
repaired by the addition of new material to such an extent as to vir¬ 
tually result in the construction of a new still or worm, the manufac¬ 
turer thereof will be held liable to the tax of $20 for each still or 
worm so constructed by him. 

By section 18 of the act of May 28,1880, distillers in registered dis¬ 
tilleries who manufacture for their own use wooden stills are ex¬ 
empted from the payment of the special tax, but they are required to 
give notice to the collector of the district in which the distillery is 
located of each still manufactured before the same is used. 

This does not apply to the manufacture of wooden stills for the use 
of distillers by any other persons than the distillers themselves, nor 
does it apply to the manufacture of wooden stills by a distiller for 
any other than his own use. 

No tax should be required on account of the manufacture of a still 
of the capacity of 5 gallons or less, unless it shall appear that the 
still has been in fact used for the purpose of distilling spirits, and 
that the manufacturer knew T , or could with proper inquiry have 
known at the time of disposing of such still, that it was intended to 
be so used. 

Stills of a larger capacity than 5 gallons, so constructed that they 
can be used for the distillation of spirits, will be presumed to be 
intended for use in distilling spirits, and their manufacture will be 
held to incur the taxes imposed by section 3244, Revised Statutes, 
paragraph “ Second,” unless the person for whom it is made, by 
evidence under oath submitted to and filed with the collector, removes 
this presumption by showing that the still is not to be used for the 
production of spirits and setting forth specifically the actual purposes 
for which it is to be used. 

Any person manufacturing any still, boiler, or other vessel to be 
used for the purpose of distilling must, before the same is removed 
from the place of manufacture, notify, in writing, the collector of 
the district in which such still, boiler, or other vessel is to be set up, by 
whom it is to be used, its capacity, and the time when the same is to 
be removed from the place of manufacture. No such still can be set 
up without the permit of such collector for that purpose. (See sec. 
3205, Rev. Stat.) 


6 


REGISTRY OF STILLS. 

Every person having in his possession, custody, or under his con¬ 
trol any still or distilling apparatus, set up, is required (sec. 3258, 
Rev. Stat.) to register the same with the collector of the district in 
which such still or distilling apparatus is located. Such registry 
must be made immediately after the still or distilling apparatus comes 
into the possession, custody, or under the control of such person, 
whether it be a new still or distilling apparatus, or whether one party 
succeeds another in the possession, custody, control, or use of such 
still or distilling apparatus. This registry will be made on Form 
26, in duplicate, and delivered to the collector, who will retain and 
preserve one copy and will immediately forward one copy to the 
Commissioner of Internal Revenue. Said registry must state the 
cit}^ or town, county, State, district, and division in which such still or 
distilling apparatus is located, the name and residence of the owner, 
the number of each still, the kind of still, the cubic contents in gal¬ 
lons, whether intended for use or not, and if for use the purpose for 
which it is to be used, the serial number of the distillery in which it is 
located, and must be signed by the owner or person in whose posses¬ 
sion, custody, or control such still or distilling apparatus may be, and 
also by the deputy collector of the division, and must also give the 
date of such registry. The law requires all stills set up to be reg¬ 
istered, whether intended for use or not, and this applies to all stills, 
of whatever size and for whatever purpose intended, whether for the 
distillation of spirits or for pharmaceutical or other purposes; and 
any still or distilling apparatus which is not so registered is subject 
to forfeiture to the United States, together with all personal property 
in the possession or custody or under the control of such person and 
found in the building or in any yard or inclosure connected with the 
building in which the same may be set up; and the person whose duty 
it is to register any still or distilling apparatus, failing to do so, is 
subject to a pecuniary penalty and to fine and imprisonment under 
section 3258. Revised Statutes. 

NOTICE BY DISTILLER. 

Every person engaged in the business of a distiller, or intending to 
engage therein, or who wishes to continue in such business on and 
after the 1st of May of each year, must give notice of such intention 
(sec. 3259, U. S. Rev. Stat.) over his own signature to the collector, 
who will forward a certified copy of such notice to the Commissioner 
of Internal Revenue. This notice will be given on Form 27 a in the 
case of a distiller using materials other than apples, peaches, grapes, 
pears, pineapples, oranges, apricots, berries, prunes, figs, or cherries, 
and on Form 27J in case of a distiller using said fruits exclusively. 


7 


In preparing the notice on Form 27 a reference should be had to 
sections 3259, 3262, 3267, and 3271, Revised Statutes, and the notice 
should be prepared in strict conformity therewith. 

The Form 27#, required in the case of a distiller from grain or 
molasses, must fully state the name and place of residence of the 
person giving the said notice, or, if a company, firm, or corporation, 
the name and residence of each member thereof or stockholder 
therein; the name and residence of every person interested or to be 
interested in the business; the name or style under which the business 
is to be conducted; the place where said business is to be carried on; 
the name of the owner of the stills and other utensils; the kinds of 
stills and cubic contents of each; the mode of boiling; number and 
kind of boilers; number of mash tubs and fermenting tubs and cubic 
contents of each in gallons; mode of mashing and fermenting; the 
number of receiving cisterns and cubic contents of each in gallons; 
the number of hours the distiller will ferment each tub of beer; when 
the fermenting period begins; the number of gallons of mash or beer 
which will represent a bushel of grain; kind of materials to be used; 
tiie estimated number of bushels of grain or gallons of molasses that 
can be mashed or fermented in a day of twenty-four hours and the 
estimated number of proof gallons of spirits that can be produced in 
the same time; a particular description of the lot or tract of land on 
which the distillery and warehouse are situated; the size and descrip¬ 
tion of all buildings on the premises, and of w T hat materials con¬ 
structed, that the warehouse is on and constitutes a part of the dis- 
tillery premises, and that no door, window, or other opening there¬ 
from leads into the distillery or into any other room or building; the 
present condition of title; and that the said distillery premises are 
not within 600 feet in a direct line of any premises authorized to be 
used for rectifying or refining distilled spirits, if such be the fact. 

Under the heading “ Statement of present condition of title,” it 
must be shown— 

1st. That the title to the distillery and premises is vested in the 
person engaging in the business of distilling, in fee, unincumbered 
by any mortgage, judgment, or other lien. 

Or, 2d. That the title is vested in the distiller in fee, but incum¬ 
bered with a mortgage, judgment, or other lien, as the case may be, 
and that the written consent of such mortgagee, judgment creditor, 
or other lien holder has been obtained, as required by section 3262, 
Revised Statutes. 

Or, 3d. That the title is vested in some person other than the dis¬ 
tiller (naming such person), and that the consent of the owner, as 
well as the consent of any other person who may be interested in the 
premises, has been obtained. 


8 


Or, 4th. That the owner of the distillery or distilling apparatus 
erected prior to the 20th day of July, 1868, has only an estate for a 
term of 3 r ears, or other estate less than fee simple, in the lot or tract 
of land on which the distillery is situated, the evidence of title to 
which was duly recorded prior to July 20, 1868, and that a lease¬ 
holder’s bond has been given in compliance with the provisions of 
section 3262, Revised Statutes. 

Or, 5th. That the owner of the distillery or distilling apparatus, 
erected prior to July 20, 1868, has only an estate for a term of years, 
or other estate less than fee simple, in the lot or tract of land on which 
the distillery is situated, the evidence of title to which was duly 
executed prior to July 20, 1868, but was not required by the laws of 
the State to be recorded at the time of its execution; and that a lease¬ 
holder’s bond has been given in lieu of consent, as authorized by 
section 3262 aforesaid. 

Or, 6th. In case of such prior erection, that the title is, and has 
been, in litigation since July 20, 1868, and that a bond has been given 
in lieu of consent, as authorized by section 3262 aforesaid. 

Or, 7th. In case of such prior erection, that the owner is possessed 
of the fee of the premises, but incumbered with a mortgage, executed 
and duly recorded prior to the 20th day of July, 1868, and not yet due, 
and that a bond has been given in lieu of consent, as authorized by 
section 3262 aforesaid. 

Or, 8th. In case of such prior erection, that the title is vested in 
some person or persons (showing whom and how incapacitated) 
incapable of giving consent, and that a bond has been given in lieu of 
such consent, as authorized by section 3262 aforesaid. 

Or, 0th. In case of such prior erection, that there has been an 
increase of the distillery premises by the addition of land or build¬ 
ings adjacent or contiguous thereto, not owned by the distiller in fee, 
and that a bond has been given in lieu of consent with respect to 
such addition. (See the second proviso to section 3262 aforesaid.) 

Or, 10th. That the distillery has been sold at a judicial or other 
sale, in favor of the United States, giving the date of such sale and 
stating that the time allowed by law for redemption has not expired, 
and that a bond in lieu of consent has been given, as authorized by 
the first proviso to section 3262 aforesaid. 

Under the provisions of section 3262 no distiller’s bond can be 
approved unless he is the owner in fee, unincumbered by any mort¬ 
gage, judgment, or other lien, of the lot or tract of land on which the 
distillery is situated, or unless he files with the collector, in connection 
with his notice , the written consent of the owner of the fee, and of 
any mortgagee, judgment creditor, or other person having a lien 
thereon, that the premises may be used for the purpose of distilling 
spirits subject to the provisions of law, and expressly stipulating that 



9 


the lien of the United States for taxes and penalties shall have pri¬ 
ority of such mortgage, judgment, or other encumbrance, and that in 
case of the forfeiture of the distillery premises, or any part thereof, 
the title of the same shall vest in the Uliited States, discharged from 
such mortgage, judgment, or other incumbrance. This instrument 
must contain a full and accurate description of the lot or tract of 
land, and must be duly acknowledged before an officer authorized to 
take acknowledgments of deeds and executed with all the formali¬ 
ties required in conveyances of real estate by the laws of the State 
where the same is to be recorded, and, in case of consent of the owner 
of the fee, the wife must join in the execution and due acknowledg¬ 
ment thereof, so as to release her claim to dower. The consent should 
then be duly recorded before the same is filed with the collector. 

In every case where the written consent of the owner of the prem¬ 
ises or of holders of liens has been given in lieu of an unincumbered 
fee simple, that fact should not only appear in the statement of title, 
but a copy of such consent should be forwarded to the Commissioner 
of Internal Revenue, accompanying the distiller’s notice, that it may 
be determined whether the requirements of section 3262, Revised 
Statutes, have been fuly complied with. In all such cases a new 
consent will be required for each year, beginning on the 1st day of 
May, excepting only when the consent has been given for a fixed time 
exceeding one year; and in these cases the collector should be careful 
to have a copy of such consent taken each year, to accompany and to 
be made a part of the distiller's notice then sent. 

When the condition of the title is such that a bond may be accepted 
in lieu of the written consent, it must be shown that the distillery 
was erected prior to July 20, 1868, except in case of a distillery sold 
at judicial or other sale in favor of the United States, and that such 
bond has been filed with the collector. 

As the question of title to the real estate is material, the collector 
should require of the distiller a properly certified statement or ab¬ 
stract of the title to such estate to be exhibited to and filed with him, 
and full evidence as to what, if any, liens or incumbrances exist 
thereon. 

Errors most frequently occur in the description of the distillery 
premises, either in being too indefinite or in embracing a large tract 
of land, most of which evidently constitutes no part of the distillery 
premises. The description should be limited to the lot or parcel of 
land actually used in connection with the distillery, and for that pur¬ 
pose alone, and should be as particular as is required in a deed of con¬ 
veyance, and, when the description is by metes and bounds, the point 
of beginning should be located with perfect accuracy, preferably 
with respect to its distance and bearings from some near and well- 
known landmark on the distillery premises. 



10 


The importance of so accurately describing the premises will be 
seen when it is remembered that, under certain circumstances, the 
Government acquires important liens thereon; that the distiller is 
prohibited from carrying on any other business on his distillery 
premises; that revenue officers have certain rights to enter and inspect 
distillery premises; and that in certain cases the distillery premises 
are forfeited to the United States. The extent of the premises, 
therefore, should be definite and certain, and the description in Form 
2 7a is that which must be referred to to determine their extent. 

The distiller, in stating the number of hours in which the distillery 
will ferment each tub of mash or beer, should name that number of 
hours within which he is allowed by law to fill a fermenting tub once 
and no more, namely, seventy-two horn’s for a sweet-mash distillery, 
ninety-six hours for a sour-mash distillery, and one hundred and 
forty-four hours for a rum distillery. 

He will also state the begining of the fermenting period to be when 
the filling of the tub begins, or when the tub is actually full, as the 
case may be. 

Every blank in the prescribed from must be ptoperly filled, and in 
case of any change in the location, form, capacity, ownership, agency, 
name or style, superintendency, persons interested in the business of 
such distillery, including stockholders in a corporation, the ferment¬ 
ing period, the time when the fermenting period begins, or in the 
number of gallons of mash or beer which will represent a bushel of 
grain, notice thereof must be given in writing to the collector of the 
district or to the deputy collector of the division within twenty-four 
hours after such change. 

The signature to the notice, when given by an individual, must in 
all cases be made by the distiller in person, or in his name by his 
authorized agent or attorney. 

In case of a firm the signature must be made in the firm name by a 
member of the firm, or by some person duly authorized as above. 

In case of a corporation the signature must be made in the name and 
under the seal of the corporation by the proper officer thereof. 

Any deputy collector receiving such notice shall immediately trans¬ 
mit it to the collector, and the collector will immediately forward a 
copy of the same to the Commissioner of Internal Revenue. 

All notices on I orm 27 a will be examined at this office, and no 
distillery waeehotjse will be established or storekeeper assigned 
thereto until such notice is approved. 

change of title, or incumbrance, of distillery property. 

Where the title to the lot or tract of land upon which an authorized 
distillery is located is changed by a sale, judicial or otherwise, or 
there is any change in the ownership of the premises or distilling 


11 


apparatus; or where the lot or tract of land on which the distillery 
stands, or any part thereof, or any of the distilling apparatus, subse¬ 
quent to the approval of the bond, becomes subject to or encumbered 
by any mortgage, judgment, or other lien, a new notice on Form 27a, 
with the necessary consent, is required; and in the case of such an 
incumbrance a new bond may also be required at the discretion of the 
collector or of the Commissioner of Internal Revenue. 

CHANGE OF PERSONS INTERESTED IN BUSINESS. 

Where there is any change in the persons shown by the last notice 
to be interested in the business, except stockholders in distilling cor¬ 
porations, the distillery is no longer duly authorized, and the same 
steps must be taken as in case of a new distillery, except that the dis¬ 
tiller may adopt or assent in writing to the correctness of the plan 
and survey on file. 

When a succession or actual change in the person or persons inter¬ 
ested in the operations of a distillery shall take place, the business of 
producing spirits must be completely finished by the person or per¬ 
sons first carrying on the business and the distillery suspended before 
the business shall be undertaken or begun by the succeding distiller, 
unless by an agreement between the outgoing distiller and the suc¬ 
cessor it shall be arranged to transfer from the former to the latter 
at midnight of a certain day all mash and beer on hand, and all 
unfinished spirits outside the cistern room at that hour; and, unless 
in advance of the day agreed upon, the necessary distillery papers 
shall have been submitted to the collector and by him forwarded to 
the Commissioner, so that the approval of warehouse for the successor 
and assignment of storekeeper thereto may be made to take effect 
on the day next succeeding that at the close of which the transfer is 
made, and the collector advised so that he may approve the bond of 
the new distiller on that day. 

CHANGE OF NAME. 

Where a distiller desires to operate his distillery under another 
name or style than that in which it has been operated, he must give 
notice of his intention so to do upon the Form 27 a for distillers’ 
annual notices, and also give a new annual bond unless the bond 
under which he is then operating shall recite the name to be adopted 
as the name or as one of the names under which he proposes to carry 
on the business of distilling. 

When a nominal change shall occur at a distillery, by reason of a 
change in the name or style in which the operations at the distillery 
are conducted, it will not be required that the business of producing 
spirits shall be completely finished and operations suspended by the 



12 


distiller desiring to change his name or style before the business shall 
be undertaken or begun by him under a different name or style; nor 
■will he be required to give notice of suspension upon Form 124. 

The sign required to be displayed by section 3279, Revised Statutes, 
must always exhibit the name under which the distillery is being 
operated. 

A distilling corporation can only do business in its lawful corporate 
name, and a change of name can only be effected in the manner pro¬ 
vided by the statutes of the State under which it was incorporated, 
and with every change in the corporate name a new notice and also a 
new bond must be given. 

CONSTRUCTION OF DISTILLERIES. 

The door of the furnace of every still or boiler used in any dis¬ 
tillery (section 3269) must be so constructed that it may be securely 
fastened and locked. The furnace must be so constructed and the 
door so affixed that when the Government lock is applied it shall 
effectually prevent the door from being opened and shall prevent the 
lighting of any fire in such furnace or under such still or boiler. 

When steam is conveyed to the distillery from adjoining premises 
the pipe used for that purpose must be provided with a valve inside 
the distillery wall so arranged that it can be securely locked. 

The fermenting tubs must be so placed as to be easily accessible to 
any revenue officer, and must each have painted thereon in oil colors 
its cubic contents in gallons, with the number of the tub, in figures 
not less .than 3 inches in length and 2J inches in breadth, which should 
correspond with that given in the notice and on the plan. There must 
be a clear space of not less than 1 foot around every wood still, and 
not less than 2 feet around every doubler and worm tank. All high 
and low wine tubs and all vessels used as receptacles for spirits 
between the outlet of the worm and the receiving cisterns must be so 
constructed as to admit of examination of every part thereof. The 
doubler and worm tallies must be elevated not less than 1 foot from 
the floor. Every fixed pipe, except those used only for the convey¬ 
ance of water or of spent mash or beer, must be so fixed and placed as 
to be capable of being examined for its whole length and must be 
painted and kept painted as follows: Pipes for the conveyance of 
mash or beer, of a red color; for the conveyance of low wines back 
into still or doubler, blue; for the conveyance of spirits, black; for 
the conveyance of water, white; and they must be designated by those 
colors on the plan. 

The pipes, vessels, or other apparatus'by which the outlet of the 
stills, boilers, or other vessels is connected with the cisterns in the 
cistern room must be so constructed as to be always exposed to the 
view of the officer, and so as to prevent the abstraction of spirits while 


13 


passing from the outlet of the worm or condenser back to the still, or 
doubler, or forward to the receiving cistern. 

All necessary openings in the pipes or vessels between the still and 
receiving cisterns must be secured and locked, the key at all times to 
be in the possession of the storekeeper. 

REDISTILLING OR RECTIFYING ROOM. 

The room or building in which are carried on the processes of recti¬ 
fying, purifying, or refining distilled spirits in the course of original 
and continuous distillation authorized by section 3244, Revised Stat¬ 
utes, must be securely constructed in such manner as to render 
entrance impossible in the absence of the storekeeper without detec¬ 
tion. 

The doors and windows must be so constructed that they may be 
securely locked and fastened. All the pipes, vessels, and other appa¬ 
ratus used in purifying or refining spirits must be so attached that the 
spirits will pass through the purifying process in their passage from 
the beer still to the receiving cisterns, and their passage must be 
through continuous and securely closed pipes and vessels, so as to pre¬ 
clude the distiller from access to the spirits except in the presence of 
the storekeeper, and then only when access is indispensable to the 
direction of the further process of manufacture. All necessary open¬ 
ings must be under a prescribed lock, the key to be kept by the store¬ 
keeper. 

In this room must be erected cisterns of sufficient capacity to hold all 
the high wines produced each day, and into which such high wines 
must be run before undergoing any of the further processes of manu¬ 
facture. These cisterns must be provided with gauges or other means 
for readily and accurately ascertaining the quantity of spirits con¬ 
tained therein at any time. 

CISTERN ROOM. 

Section 3267, Revised Statutes, requires that the owner, agent, or 
superintendent of any distillery shall erect in a room or building, to 
be provided and used for that purpose and for no other, and to be 
constructed in the manner to be prescribed by the Commissioner of 
Internal Revenue, two or more receiving cisterns, each to be at least 
of sufficient capacity to hold all the spirits distilled during a day of 
twenty-four hours. 

These receiving cisterns must be placed in a room or building made 
perfectly secure, said room or building to be so constructed as to 
render it impossible for any person to enter in the absence of the 
gauger without detection. The ceiling and walls inside of such room 
or building must be plastered, or cased with matched boards, and if 



14 


constructed of wood the walls must also be clapboarded on the out¬ 
side or sided up in the manner usually employed for weatherboarding. 
The floor must be of brick or stone laid in cement, or of concrete or 
cement, or of ordinary flooring plank, the same to be tongued and 
grooved, or laid double, the boards crossing each other at right angles, 
and in either case to be securely nailed or fastened. The windows 
must be secured by iron bars or gratings and to each window must be 
affixed solid shutters of wood or iron, so constructed that they may 
be securely barred and fastened on the inside. The door must be 
thick and substantial and so constructed that it may be securely 
locked and fastened. The hinges on the window shutters and door 
must be so affixed as to prevent their removal from the outside. The 
staple to which the Government lock is applied must be well secured, 
so that it can not be drawn or removed. 

Where a distiller draws off his spirits but once in three days he 
must have three cisterns. He can not, in any case, have less than 
tivo. The product of each day’s distillation shall be kept separate, 
and where one kind of spirits only is produced it must all be run into 
one receiving cistern; where two or more kinds of spirits, such as 
alcohol and high wines, or two or more grades of the same kinds of 
spirits, are produced on the same day, two or more cisterns may be 
used; but in no case can the product of one day’s distillation be 
mixed with the product of another or second day. If the distiller 
has not provided at least two separate cisterns, each of a capacity 
sufficient to hold a full day’s product when running at the full capac¬ 
ity of the distillery, the collector has no right to approve his bond. 

These cisterns must not be connected with each other, and must be 
so constructed as to leave an open space of at least 3 feet between the 
top and the roof or floor above, and a space of not less than 18 inches 
between the bottom and the floor below, and they must be separated 
so that the officer may pass around them. 

The top of each cistern must be securely covered, and no opening 
will be allowed in the top, except one of sufficient size to allow the 
distiller to properly plunge or mix the spirits with the water intro¬ 
duced for reducing the spirits to the proof desired. 

Said opening must be so covered that it may be locked, and the 
gauger will lock the same on leaving the cistern room and retain the 
key. The faucet, through which the spirits are drawn from the 
receiving cisterns, must also be locked and the key kept by the gauger. 

The stopcocks that control the flow of the spirits to the receiving 
cisterns must be so arranged that the spirits may be run into either 
of the cisterns ; and said stopcocks, if in the receiving room, must be 
controlled by rods, the handles of which must extend into the dis¬ 
tillery and be under lock and key; if such stopcocks are outside of 
the receiving room they must be boxed and securely locked; and in 


15 


either case the storekeeper will keep the key. The storekeeper, and 
he alone, is authorized to change the flow of the spirits from one 
cistern to another. 

CUSTODY OF CISTERN ROOM. 

Gaugers are made the custodians of the receiving rooms at dis¬ 
tilleries, and are held responsible for the safe-keeping of the spirits 
run into the receiving cisterns until drawn off under their supervision 
and delivered in proper manner into the custody of the storekeeper at 
the distillery bonded warehouse, so far as any loss may be reasonably 
guarded against, and under no circumstances will they intrust the 
key to the lock on the door of the receiving room to any person other 
than the collector of the district ; and they are enjoined not to admit 
any person in the receiving room except in their presence. 

MEAL ROOM. 

The distillery must be so constructed as to render it impossible for 
more grain to be added to the mash without the knowledge of the 
storekeeper after the proper quantity of each kind of grain has been 
weighed out by him. It is therefore prescribed that in all grain dis¬ 
tilleries where meal is stored on the premises a securely constructed 
meal room shall be provided which shall be locked and otherwise 
secured by proper fastenings, and that the meal hoppers, through 
which the meal is conveyed to the mash tub, shall be securely covered 
and locked, and that the outlets shall be closed and locked, the store¬ 
keeper to have possession of the keys. In cases where meal hoppers 
are not used and a room is constructed in the story immediately above 
the mash tub, it must be securely locked and fastened, and the open¬ 
ings in the floor must also be closed and locked, the storekeeper to 
have possession of the keys. No one shall have access to the meal 
room except in the presence of the storekeeper. 

OFFICE ACCOMMODATIONS. 

The distiller will provide such reasonable and suitable office accom¬ 
modations on the distillery premises for the use of the officers assigned 
to duty at the distillery as may be necessary for keeping and preserv¬ 
ing their records and making the required returns and reports. 

EXAMINATION OF DISTILLERIES BY COLLECTORS. 

Before allowing any distiller to commence operations the collector 
should thoroughly examine the distillery proposed to be operated, and 
determine whether it is constructed in strict accordance with section 
3269, Revised Statutes; that the clear spaces required by said section 
are fully observed; that the pipes are properly painted, and that the 



16 


connections between the still and the receiving cisterns are close; and 
that there are no openings in the apparatus from the time the vapor 
rises in the stills until it is deposited in the receiving cisterns, except 
such openings as may be found necessary for the conduct of the busi¬ 
ness, which openings must in all cases be securely locked and the key 
placed in charge of the storekeeper. 

EXEMPTION OF SMALL DISTILLERIES FROM CERTAIN REQUIREMENTS OF 

LAW. 

Under the authority, given by section 5 of the act of March 1, 1879, 
(sec. 3255tf, Int. Rev. Compn.), distillers whose distilleries have a 
daily spirit-producing capacity of 30 gallons of proof spirits or less, 
as estimated and determined by a survey made according to law, are 
exempted from certain provisions of sections 3203, 3207, and 3269 of 
the United States Revised Statutes, as follows: 

(1) From so much of the provisions of section 3263 as requires a 
plan of the distillery to be had or furnished by the distiller. 

(2) From so much of the provisions of sections 3267 and 3269 as 
requires that the open or clear spaces above, below, or around the 
receiving cisterns, wood still, doubler, and worm tanks shall be of any 
greater extent or dimensions than may be necessary to afford a clear, 
distinct, and uninterrupted view around, above, and beneath each of 
said vessels or utensils. 

It will be observed, however, that such distillers are relieved from 
no other requirements of the law save those specifically set forth 
above, and that in all other respects they are bound by existing law 
and regulations concerning the construction of distilleries and the 
duties and obligations of distillers. 

INQUIRY AND EXAMINATION CONCERNING CONSTRUCTION OF SMALL 
DISTILLERIES. 

Form No. 279 has been prepared and prescribed for the use of 
collectors in making inquiry and examination in case of all distilleries 
having a daily surveyed capacity of 30 gallons of proof spirits or less, 
of which plans are not required to be furnished. 

It is the duty of the collector of the district, and he is required, 
upon receipt of notice from a distiller of intention to begin the opera¬ 
tion of such a distillery, and on the 1st day of May of each year, to 
make inquiry and examination of the distiller concerning the con¬ 
struction and arrangement of his distillery under the law and 
regulations in this respect. 

Such inquiry and examination is to be made upon interrogatories 
in the form prescribed, to be answered in writing, and subscribed by 
the distiller and delivered to the deputy collector in charge of that 
division of the district. 


17 


The deputy collector shall thereupon make personal inspection of 
the distillery, and certify upon the form prescribed for the interroga¬ 
tion of the distiller, as to the correctness of the answers of the dis¬ 
tiller, and as to the conformity of the distillery to the requirements 
of law and regulations. 

Until such inquiry has been made, and the answers of the distiller 
and certificate of the deputy collector have been received and found 
in all respects satisfactory, the collector will withhold his approval of 
the distiller’s notice or application for approval of warehouse. If the 
answers and certificate show a due and full compliance with law and 
regulations, the collector will indorse thereon his own certificate that, 
in his opinion, the answers and certificate correctly represent the con¬ 
struction of the distillery and that there is a properly qualified store¬ 
keeper-gauger for assignment thereto who is entirely competent to 
take charge of the same and is fully supplied with a complete set of 
weighing and gauging instruments, a gauger’s manual and weighing 
manual, and the internal-revenue laws' and regulations concerning 
distilled spirits. lie will then forward a certified copy of such form, 
together with other requisite distillery papers, to the Commissioner of 
Internal Revenue. 

In no case will the collector approve the bond of a distiller for the 
commencement of operations at such a distillery, or for the continu¬ 
ance of operations on the 1st day of May of each year, unless the 
answers and certificate shall show a full compliance with law and 
regulations in all respects covered by the interrogatories; nor until 
the Commissioner of Internal Revenue has notified him of the ap¬ 
proval of the distillery warehouse in case of distillers commencing 
operations. 

SIGNS, FENCES, AND GATES. 

Every person engaged in distilling or rectifying spirits, and every 
wholesale liquor dealer, is required (sec. 3279, Rev. Stat.) to place and 
keep conspicuously on the outside of his distillery, rectifying estab¬ 
lishment, or place of business a sign exhibiting in plain and legible 
letters not less than 3 inches in length, painted in oil colors or gilded, 
and of a proper and proportionate width, the name or firm of the dis¬ 
tiller, rectifier, or wholesale dealer, with the words, Registered dis¬ 
tillery,” “ Rectifier of spirits,” or “ Wholesale liquor dealer,” as the 
case may be. A penalty of $500 attaches to the person who neglects 
or refuses to display such sign in a conspicuous place on the outside 
of his distillery, rectifying house, or wholesale liquor dealer’s es¬ 
tablishment. 

Under section 3275, Revised Statutes, no fence or wall of a height 
greater than 5 feet can be allowed around the premises of any distil¬ 
lery, so as to prevent easy and immediate access thereto. The same 
56815—OS-2 



18 


section requires that every distiller shall furnish to the collector of 
the district as many keys to the gates and doors of the distillery as 
may be required by the collector from time to time; and the distil¬ 
lery must always be kept accessible to any officer or other person 
havings such key. 

PLAN OF DISTILLERY. 

Previous to the approval of his bond every person intending to 
engage in the business of a distiller must, under the direction of the 
collector, cause to be made at his own expense an accurate plan and 
description in triplicate of the distillery and distilling apparatus, as 
provided in section 3263, Revised Statutes. Such plan must be on 
good paper or tracing linen, 15 by 20 inches in size, outside measure, 
with a margin of at least 1 inch clear space on each side of the draw¬ 
ings, lettering, and writing, so that such drawings, lettering, and 
writing shall not exceed 13 by 18 inches in size. The plans must be 
drawn to scale, and the scale must be indicated on each drawing. 
Where the distillery or apparatus occupies more than one floor or 
story, each floor or story must be shown by a floor plan on a separate 
sheet, and, if the apparatus be complicated, by one or more elevation 
or vertical sectional drawings to show the connections and clear 
spaces. The collector, under whose direction the plan is to be made 
and who is to certify as to its correctness, must test the accuracy of 
every plan made. He must see that competent draftsmen are em¬ 
ployed to make it. He will also see that the name of the distiller, 
the number of the distillery, and the designation of the drawing as 
a plan, supplemental plan, a plat, or the story represented are indi¬ 
cated at the top of the sheet within the margin in very plain and 
legible characters. 

The plans must show the exact location of each still, boiler, doubler, 
worm tub, and receiving cistern, the course and construction of all 
fixed pipes, and of every branch and every cock or joint thereof, and 
of every valve therein, together with every place, vessel, tub, or uten¬ 
sil from and to which any such pipe leads, or with which it com¬ 
municates; also the number and location and cubic contents of every 
still, mash tub, and fermenting tub; the cubic contents of every re¬ 
ceiving cistern; and each fixed pipe and the purpose for which such 
pipe is used must be indicated thereon by its color. Pipes for the con¬ 
veyance of mash or beer must be painted a red color; for the convey¬ 
ance of low wines back into still or doubler, blue; for the conveyance 
of spirits, black; for the conveyance of water, -white. 

The description above referred to should, where the space on the 
sheet will admit of it, be written upon the particular sheet to which 
it relates, and references to utensils and apparatus should be either 
by letters or figures. 


19 


The accuracy of every plan and description must be verified by the 
collector, the draughtsman, and the distiller, and this certificate must 
be dated, and should be substantially in the following form: 

-District of-- , 19—. 

e hereby certify that this is an accurate plan (plat or supplemen¬ 
tal plan, as the case may be) of the distillery (or distillery premises) 
of-, No.-, of this district. 

-, Collector. 

-, Draughtsman . 

-, Distiller. 

Plats of distillery premises must be drawn so as to agree exactly in 
the outer boundary lines with the description of the same contained 
in the notice on Form 27and show in outline thereon the buildings 
and their respective locations, and the cardinal points of the compass 
must also be indicated thereon. 

After such plan is made, no alteration can be made in such distil¬ 
lery or distilling apparatus without the written consent of the col¬ 
lector, and such alteration must be shown by a supplemental plan and 
description, which should also be made in triplicate like the original. 
One of said plans is to be kept displayed in some conspicuous place 
in the distillery, one kept by the collector, and one transmitted by 
him to the Commissioner of Internal Revenue, rolled and not folded; 
and any supplemental plan will be disposed of in the same manner. 

In case a distiller wishes to commence business in a distillery a 
plan and description of which are already on file in this office, no 
new plan or description need be made, unless changes have been 
made in the apparatus. If no changes have been made, the person 
intending to commence business may accept the plan and description 
on file. Such acceptance, embracing a certificate that no change has 
been made, must be made in triplicate, in writing, and one copy 
attached to each plan. 

Distillers whose distilleries have a daily spirit-producing capacity 
of 30 gallons of proof spirits or less are not required to furnish a plan. 
(See “ Exemption of small distilleries from certain requirements of 
law,” p. 16, and also “ Inquiry and examination concerning construc¬ 
tion of small distilleries,” p. 16.) 

SURVEY OF DISTILLERIES. 

Section 3264, Revised Statutes, as amended by the act of March 1, 
1879, provides that “ on receipt of notice that any person, firm, or 
corporation wishes to commence the business of distilling, the col¬ 
lector, or a deputy collector,' to be designated by him, shall proceed 
in person, at the expense of the United States, with the aid of an 










20 


assistant designated by the Commissioner of Internal Revenue for 
the purpose of making surveys of distilleries in that district, to make 
a survey of such distillery for the purpose of estimating and deter¬ 
mining its true spirit-producing capacity for a day of twenty-four 
hours.” 

The statute requires the personal attendance of the collector, or a 
deputy collector to be designated by him, as well as that of a desig¬ 
nated assistant, for the purpose of making a survey. 

But when the capacity of the distillery as stated by the distiller on 
Form 27 a or Form 27^ does not exceed 150 proof gallons of spirits 
every twenty-four hours, the survey may be made by the collector or 
a deputy without the aid of an assistant. 

Surveys may be made without revisiting the distillery, when made 
for the purpose of correcting clerical errors or errors of computation 
existing in the report of a previous survey, or when the purpose of 
the resurvey does not require the remeasurement of the distillery 
utensils; as, for example, when a resurvey is occasioned by a change 
in the strength of the mash or beer which the distiller proposes to use. 

If a deputy collector is designated for the purpose of making sur¬ 
veys the designation must be in writing. 

Collectors will report to this office the name of each deputy desig¬ 
nated for this purpose, with the date of designation, and will also 
promptly report the revocation of such a designation and its date. 

In making the survey the officers will assume that the distiller will 
put his machinery and apparatus in good working order, use good 
material, and employ competent and skillful wmrkmen, and so man¬ 
age his business as to produce the most favorable results; and the 
question to be determined is what, under such circumstances, is the 
number of bushels of grain or gallons of molasses which can be 
mashed and fermented in twenty-four hours, and the quantity of 
spirits that can be produced in the same time. 

The true spirit -producing capacity of a distillery is not limited to 
what the distiller may produce by following a particular course which 
he has marked out, but what may be produced under favorable cir¬ 
cumstances. The distiller, for instance, may say that he will mash a 
certain number of bushels, and but once a day, and will use a portion 
only of his fermenting tubs; but what he could produce by that 
process is not the true spirit-producing capacity of his distillery, be¬ 
cause he could mash double the proposed number of bushels, and three 
or four times instead of once per day, and can ferment twice or three 
times as much as he states, and of course increase his product in pro¬ 
portion. The true spirit-producing capacity of such a distillery is 
not the amount which is so proposed to be produced, but the amount 
which can be produced, using all the machinery and apparatus, under 


21 


competent and skillful management, taking as a basis for the calcu¬ 
lation such premises as will produce the best practical results. 

In order to estimate and determine the true spirit-producing capac¬ 
ity of a distillery it is necessary to ascertain the capacity of the mash 
and fermenting tubs. This should be done by actual and careful 
measurement, and the report must show, in inches and fourths of an 
inch, the greatest diameter, least diameter, and depth of each round 
or oval tub; the length, breadth, and depth of each square tub; the 
number of dry inches allowed for stirring or manipulating the mash 
in the mash tubs, and the number allowed for fermenting the beer in 
the fermenters; the working capacity of each tub, in gallons. In 
estimating the working capacity of the mash tubs in bushels 25 gal¬ 
lons of mash will be taken to represent not less than 1 bushel. The 
mashing capacity should be limited by the fermenting capacity, as 
the distiller would not, it is supposed, mash more than he could fer¬ 
ment; and where there is an excess of mashing capacity the fact 
should be noted and the reason for the excess stated, as the mash tubs 
may be used for fermenters, or there may be facilities for fermenting 
which do not appear upon the plan. 

To determine the capacity of fermenting tubs the following rules 
will be observed as sufficiently accurate for all practical purposes, 
though not mathematically correct. Having found the top and bot¬ 
tom diameters in inches, add them together and divide by 2. This 
will give the mean diameter of round tubs sufficiently near for all 
practical purposes. Multiply the square of the mean diameter by the 
decimal .0034, which will give the number of gallons and fractions of 
a gallon in four decimal places for 1 inch of depth. Multiply the 
result so found by the depth (in inches) less the number of dry 
inches allowed for fermentation, as hereinafter prescribed, and the 
result will be the working capacity of the tub in gallons. For square 
tubs, multiply the length and breadth (in inches) together and divide 
by 231, and it will give the number of gallons for 1 inch of depth. 

For oval tubs multiply the greatest and least diameters of the top 
of the tub (in inches) together and that product by .0034, and the 
result will be the number of gallons for 1 inch of depth at the top of 
the tub. The same process with the greatest and least diameters of 
the bottom will give the number of gallons for 1 inch at the bottom. 
Add together the results so obtained and divide by 2, and it will give 
the mean capacity for 1 inch of depth. For barrel-shaped tubs the 
rule in Gauger’s Manual, page 36, for finding the capacity of a cask 
is applicable. Having found the capacity in gallons for 1 inch of 
depth, the working capacities are obtained as in the first case, and 
may be stated in the report of survey, dropping all fractions under 
three-tenths of a gallon, calling three-tenths, or any intermediate 


22 


fraction to seven-tenths, one-half, and seven-tenths or upward an en¬ 
tire gallon. Having found the aggregate working capacity of all the 
fermenters in gallons, the working capacity in bushels will be found 
by dividing the working capacity in gallons by the number of gallons 
of beer required by law to represent a bushel of grain, which is not 
more than 45, except in distilleries operating on the sour-mash prin¬ 
ciple, in which case not more than 60 gallons may be used as a divisor. 
In case the distiller wishes to use a thicker mash or beer, and so states 
in his notice, the divisor will be proportionately less. Having found 
the aggregate working capacity of all the fermenters in bushels, the 
next step is to determine the number of bushels of grain that can be 
mashed and fermented in a day of twenty-four hours; this in a sweet- 
mash distillery will be taken to be one-third and in a sour-mash dis¬ 
tillery one-fourth of the aggregate working capacity. 

The law has fixed limits within which but one fermentation can 
take place, to wit: Seventy-two hours for sweet-mash distilleries, 
ninety-six hours for sour-mash distilleries, and one hundred and 
forty-four hours for rum distilleries. The capacity of all distilleries 
will be based upon these periods respectively. 

The number of dry inches to be allowed for fermentation is a sub¬ 
ject for the discretion of the collector and his assistants; but as a large 
amount of information on this point has been received at this office, 
based upon examination and experience, it has been deemed advisable 
to fix a maximum for such allowance. In estimating the number of 
dry inches to be allowed, the collector and his assistants will be gov¬ 
erned by the depths of the tubs; but it is believed that for tubs 5 feet 
or less in depth 3 inches is a fair allowance where corn is used in 
excess of all other grains; 5 inches where corn and rye or other small 
grains are used in equal proportions; 7 inches where rye is used in 
excess of all other grains, and 10 inches where rye is used exclusively. 
To this allowance one-half inch may be added for each foot in excess 
of 5 feet, except where rye is used exclusively, in which instance 1 
inch may be added for each foot in excess of 5. 

Having thus found the number of bushels which can be mashed 
and fermented in twenty-four hours, the next point to be determined 
is what quantity of spirits can, under all the circumstances, be pro¬ 
duced from a bushel of grain—that is, what quantity of spirits can a 
practical distiller, with good management, produce from a bushel of 
good grain; and while no fixed rule can be laid down on the subject, 
it may be suggested that in ordinary distilleries this varies from 3 to 4 
gallons and upward, and in the best class of distilleries runs consid¬ 
erably over 4 gallons, averaging over 3J to the bushel in ordinary 
distilleries, about 4| gallons in the largest and best equipped distil¬ 
leries, and more than 4^ gallons to the total bushels distilled in the 
country, 


23 


It may be safely assumed that it would require a strong case to jus¬ 
tify an estimate of less than from gallons to 4J gallons, according 
to the kind of distillery under survey, and in such case the reasons 
for such an estimate must be fully reported to the Commissioner; and 
in all cases where the estimate is below the average an explanation 
will be required. Having determined this product, multiply the 
number of bushels that can be fermented in twenty-four hours by it, 
and the result will be the quantity of spirits that can be produced in 
twenty-four hours. 

Sour-mash distilleries may be briefly described as those in which no 
fermenting agents other than spent beer or slop and barm from a 
tub previously set and fermented are used. The meal is mixed with 
the slop directly from the still and allowed to remain twenty-four 
hours, at the end of which period the mash becomes hard and sour. 
It is then broken up and reduced with water, and the barm added, 
and allowed to undergo a natural fermentation. Where the process 
of yeasting back is used as above described the fermentation is not so 
rapid or complete as in sweet-mash distilleries, where yeast is used. 

A fermenting period of ninety-six hours (and not more than 60 gal¬ 
lons of beer to represent a bushel of grain) will be allowed in all 
sour-mash distilleries, without reference to the manner of heating, 
stirring, or distillation. 

In the case of distilleries in which the mashing and fermenting are 
done in the same tubs the twenty-four hours used for mashing will be 
included in the ninety-six hours allowed by the statute for fermenta¬ 
tion, and all the tubs in the distillery will be treated as fermenters 
and be embraced in the estimate of the capacity. Where the distiller 
prefers, he may set aside certain of his tubs to be used exclusively for 
mashing, marking them each distinctly “ mash tub,” and in such 
cases the capacity will be estimated upon the tubs used for fermenters. 

The capacity of a molasses distillery is estimated upon the same 
principle. Having found the working capacity of the fermenters in 
gallons, as above stated, divide this by the number of gallons of 
mash which the distiller makes from a gallon of molasses, not exceed¬ 
ing seven gallons of mash for a gallon of molasses, and it will give 
the number of gallons of molasses required to fill the fermenters, and 
divide the amount thus found by 6, the number of days allowed for 
fermentation in distilleries in which the finished product or any por¬ 
tion thereof is rum, and it will give the quantity which can be fer¬ 
mented in twenty-four hours. In a molasses distillery the allowance 
of dry inches should be the same as in a grain distillery where corn is 
used in excess of all other grain. 

The period allowed for fermentation in determining the spirit- 
producing capacity of a distillery where rum is produced from 
molasses is one hundred and forty-four hours, and is computed from 


24 


the time the mash is set—that is, including the day when molasses is 
first placed in the fermenter, although the tub may not be tilled until 
a subsequent day. 

A distillery in which molasses is the sole or principal material used 
for the production of spirits, and in which the entire product is by a 
continuous process of distillation converted into alcohol or highly 
refined spirits, may be surveyed as a sweet-mash distillery or as a 
sour-mash distillery according to the method of fermentation em¬ 
ployed, and the daily gallons of molasses will be found by dividing 
the total gallons by 3 or by 4, as the case may be. 

The quantity of spirits which can be produced from a gallon of 
molasses varies, of course, with the completeness of the apparatus and 
the quality of the material, from 80 to 95 per cent—from 85 to 90 
per cent probably being a fair average; and in no case should a less 
allowance than this average be made without first submitting a full 
report of the reasons therefor to the Commissioner. 

REPORT OF SURVEY. 

Reports of surveys will be made upon Form 123 in the case of a 
grain or molasses distillery; and upon Form 99 in the case of a fruit 
distillery, in triplicate, one copy to be delivered to the distiller, one 
forwarded to the Commissioner of Internal Revenue, and the other 
retained by the collector. Assessments are made upon the basis of 
each survey, from and including the date of delivery to the distiller. 
It is of the utmost importance, therefore, that the report forwarded 
to the Commissioner of Internal Revenue should bear a certificate 
showing the exact date when such report of survey was delivered to 
the distiller, and the collector must be able to verify the fact of such 
delivery, and the particular day thereof. 

In addition to the usual certificate showing the date of actual 
delivery of a copy of the report to the distiller it is therefore required 
that the officer making the delivery shall indorse on the copies of the 
reports respectively retained by the collector and sent to the Commis¬ 
sioner a certificate of*service showing the date on which he delivered 
a copy of the report to the distiller, by handing the same to him in 
person, or, in his absence, by leaving it with his agent on the distillery 
premises, or other person.in charge of the distillery; and stating that 
he explained to such agent or person the purport thereof. 

The report of the survey of grain distilleries should embrace the 
estimated producing capacity for all the kinds of grain commonly 
used for the production of spirits, and should include an estimated 
capacity for both sweet mash and sour mash. The working capacity 
of each of the fermenting tubs, whether open or closed, must be esti¬ 
mated and reported in the survey. 


25 


In case any question arises as to the correctness of the survey, the 
collector will forward a draft of his report to the Commissioner be¬ 
fore it is signed, in order that such questions may be determined. 

The importance of these reports will be seen when it is remembered 
that they are the basis of assessments, and they should, therefore, be 
in strict conformity with the requirements of the law. The reports 
must be signed by the collector or deputy collector, as the case may 
be, and his designated assistant where one was employed. 

It will be observed that section 8264, Revised Statutes, as amended, 
provides that if the Commissioner of Internal Revenue shall at any 
time be satisfied that the report of the capacity of a distillery is in 
any respect incorrect or needs revision, he shall direct the collector to 
make in like manner another survey of said distillery. There are 
cases, however, where, in order to prevent delay in the business of 
the distiller, it will be necessary for a new survey to be made without 
waiting for the order of the Commissioner. Those cases are, where a 
new distillery is about to start, where new tubs are put up in an old 
distillery, where tubs are cut down, or where a distiller gives notice 
that he wishes to use a thicker or thinner beer than that upon which 
his last survey was based, provided the strength of beer desired to be 
used is within the minimum prescribed in section 8264, Revised Stat¬ 
utes, as amended, viz, 45 gallons for sweet mash and 60 gallons for 
sour mash, as representing not less than 1 bushel of grain, and 7 gal¬ 
lons as representing not less than 1 gallon of molasses. 

It is important that the distinction between an amended report of 
survey and a report of resurvey should be clearly understood. The 
former is made for the purpose of correcting clerical errors occurring 
in a single copy of the report, and takes the same date, and date of 
delivery, as the report corrected. The latter is a report of another 
survey of the distillery, and must bear the actual dates of making and 
delivery. 

distillers’ bonds. 

Every distiller, on filing his notice with the collector, must, before 
continuing or commencing business, and on the 1st day of May in 
each succeeding year, make and execute a bond in the form prescribed 
by the Commissioner of Internal Revenue, with at least two sureties, 
unless under the authority contained in an act approved August 18, 
1804, a corporation duly authorized in writing by the Attorney- 
General of the United States to become surety on such bond shall be 
offered as a sole surety thereon. The form prescribed by the Com¬ 
missioner is Form 30 in case of a grain or molasses distiller, and 
Form 30^ in case of a fruit distiller. Such bond when signed by a 
corporation as surety will be executed in duplicate. 


26 


The bond shall be for a penal sum not less than the amount of tax 
on the spirits that can be distilled in the distillery during a period of 
fifteen days with all the fermenters and apparatus in use, but in no 
case shall the bond exceed the sum of $100,000. 

As such bonds are not required by law to be recorded, no acknowl¬ 
edgment of the execution of the same before an attesting officer will 
be required. Such bonds, however, should be executed under seal, 
i. e., a seal of wax or wafer (or corporate seal, in case of a corpora¬ 
tion) should be affixed thereto by each signer, and the execution of 
such bonds should be attested by at least two subscribing witnesses, 
except as to bonds executed on behalf of a corporation, either as prin¬ 
cipal or surety, in which case the corporate seal will be a sufficient 
attestation. 

In the event that a corporation, executing a bond as a party thereto, 
has no corporate seal, a certificate to that effect, signed and sworn 
to by the president and secretary of the company, will be required; 
and in such cases the officer or agent executing the bond on behalf of 
any such company will be required to attach a seal of wax or wafer 
to the corporate signature. 

Should any corporation having a common seal adopt another or 
special seal in some other or different form than the common seal for 
the use of its officers or agents in executing bonds on its behalf, a 
copy of the resolution of the board of directors of such corporation, 
containing an extract from the by-laws authorizing such action, and 
describing in detail the form and character of the special seal which 
it proposes to adopt, shall be required in every instance, certified and 
sworn to by the president and secretary of such corporation and 
under its common seal. 

Collectors will, in addition to a careful and searching examination 
of the sufficiency of all sureties offered, require personal sureties to 
justify on Form 33 in such amounts as are safe, prudent, and ade¬ 
quate to save the Government harmless from loss, which amounts 
should not be less than the penal sum of the bond. 

When an incorporated company is offered as a sole surety on a dis¬ 
tiller’s bond, under the provisions of the act of August 13, 1894, the 
collector must, before accepting such company as a surety, satisfy 
himself that it has been granted authority in writing, by the Attor¬ 
ney-General of the United States, to do business under said act; and, 
if not incorporated under the laws of the State where it is offered as a 
surety, that it has by a written power of attorney appointed some 
person residing within the jurisdiction of the court for the judicial 
district wherein the suretyship is to be undertaken, and who is a citi¬ 
zen of the State or Territory wherein such court is or may be held, as 
its agent, upon whom may be served all lawful process against such 
company, and who is authorized to enter an appearance in its behalf, 


27 


and that the officer or agent signing the bond is duly authorized to 
execute such bonds. 

A surety company may be accepted as sole surety upon any dis¬ 
tiller’s bond the penal sum of which is not greater than 10 per cent 
of the paid-up capital and surplus of such company. Two or more 
surety companies may be accepted as sureties on any distiller’s bond 
the penal sum of which does not exceed the 10 per cent limit of their 
aggregate paid-up capital and surplus; and in such case each com¬ 
pany may limit its liability, in terms, upon the face of the bond, to a 
definite, specified amount, such amount to be within the 10 per cent 
limitation. 

When a bond is found to be properly filled up and the sureties 
ample, the collector will approve the same, provided all the require¬ 
ments of the laAv have been complied with, and will forward a copy of 
such bond, when executed by personal sureties, together with copies 
of affidavits of sureties on Form 33, to the Commissioner of Internal 
Revenue and file the original in his office. In case of bonds executed 
in duplicate by corporate sureties, one copy will be filed in the col¬ 
lector’s office and the other forwarded to the Commissioner of Inter¬ 
nal Revenue. 

Where the distiller is not the owner in fee of the distillery prem¬ 
ises, collectors must require a strict compliance with the provisions 
of section 3262, Revised Statutes, before approving his bond. 

No collector will (sec. 3261, Rev. Stat.) approve the bond of any 
distiller until all the requirements of law and the regulations in rela¬ 
tion to distilleries have been complied with. 

No distiller’s bond should be approved until his distillery warehouse 
has been approved and established under section 3271, Revised Stat¬ 
utes, and a storekeeper assigned thereto by the Commissioner of 
Internal Revenue. 

Where bonds are not approved until after the 1st day of May, or 
where presented for approval on the 1st day of May, by those com¬ 
mencing business, the approval should not be made until the collector 
is advised by this office that the Form 27 a, report of survey, plan or 
Form 279, as the case may be, and warehouse are approved and store¬ 
keeper assigned; but in the case of those offering bond for approval 
on the 1st day of May, with the view of continuing business, the 
approval may be made without awaiting advices from this office. 

It being the duty, under the law, of collectors to approve the bonds 
of distillers, it is their duty to satisfy themselves that all such bonds 
are properly filled out and executed, and that the sureties are suffi¬ 
cient, before approving any distiller’s bond. The Commissioner of 
Internal Revenue will give no instructions to nor interfere with col¬ 
lectors in the performance of such duties except in case of appeal, but 


28 

-will hold such officers strictly responsible for their action in each and 
every case. 

POWER OF COLLECTORS TO REFUSE TO APPROVE DISTILLERS’ 

BONDS. 

Section 3200, Revised Statutes, provides that the collector may 
refuse to approve any distiller’s bond when, in his judgment, the situ¬ 
ation of the distillery is such as would enable the distiller to defraud 
the United States; and in case of such refusal the distiller may appeal 
to the Commissioner of Internal Revenue, whose decision in the mat¬ 
ter shall be final. 

Section 67 of the act of August 28,1894 (sec. 3260«, Int. Rev. Comp, 
of 1900), reads as follows: 

That whenever any person intending to commence or to continue 
the business of a distiller shall execute a bond under the provisions 
of section thirty-two hundred and sixty of the Revised Statutes of the 
United States, and file the same with the collector of internal revenue 
for the district in which he proposes to distill, the collector may refuse 
to approve said bond if the person offering the same shall have been 
previously convicted, in a court of competent jurisdiction, of any 
fraudulent noncompliance with any of the provisions of law relating 
to the duties and business of distillers, or if the Commissioner of 
Internal Revenue, with the approval of the Secretary of the Treasury, 
shall have compromised such an offense with the person upon the pay¬ 
ment of penalties or otherwise, and, in case of such refusal, the per¬ 
son so proposing to distill may appeal to the* Commissioner of Inter¬ 
nal Revenue, whose decision in the matter shall be final. 

Under these provisions of law collectors may refuse to approve the 
bond of a distiller, not only when the situation of the distillery is such 
as would enable the distiller to defraud the United States, but also if 
the person offering such a bond shall have been previously convicted 
in a court of competent jurisdiction of any fraudulent noncompliance 
with any of the provisions of law relating to the duties and business 
of a distiller, or if the Commissioner of Internal Revenue, with the 
approval of the Secretary of the Treasury, shall have compromised 
such an offense with the person upon the payment of penalties or 
otherwise. 

It is apparent that the purpose of the section in thus enlarging the 
powers of the collector is to prevent persons who shall have been con¬ 
victed of offenses against the internal-revenue laws, or who shall have 
compromised such offenses, from again qualifying to engage in busi¬ 
ness as distillers, and collectors will be expected to so exercise this 
power as to give full force and effect to this evident purpose and 
intent. 

When an appeal is taken to the Commissioner the collector will 
furnish full information in the one case as to the situation of the dis- 


29 


tillery and as to how and why the situation will enable the distiller to 
defraud the United States, and in the other case as to the nature of 
the offense, giving date of conviction or of acceptance of compromise, 
with his reasons for refusing to approve the bond. 

leaseholder’s bond. 

Where the distiller is the owner of the distillery or distilling appa¬ 
ratus, erected 'prior to July W, 1868 , but has only an estate for a term 
of years or other estate less than fee simple in the lot or tract of land 
under a lease or other evidence of title recorded before July 20 , 1868; 
or in like case, where the lease or other evidence of title was not 
required by the laws of the State to be recorded in order to render it 
valid; or where the title was on July 20, 1868, and has continued to 
be, in litigation; or where there was a mortgage duly recorded prior 
to that date which is not due; or where the fee is held by a femme 
covert , minor, person of unsound mind, or other person incapable of 
giving consent as required in section 3262, the distillery or distilling 
apparatus having also been erected prior to that date; the distiller 
may, in lieu of the consent and stipulation aforesaid, give an addi¬ 
tional bond on Form No. 3, with not less than two sureties, residents 
of the collection district or county or an adjoining county in the same 
State in which the distillery is situated, and owners of unencumbered 
real estate in said district or county or adjoining county equal to the 
penal sum of the bond. A duly authorized corporation may, how¬ 
ever, be accepted as sole surety on such bonds, and in such case the 
bond will be executed in duplicate, one copy to be filed in the col¬ 
lector’s office and the other forwarded to the Commissioner of Internal 
Revenue. 

In such case the collector will cause the value of the lot or tract of 
land, together with the buildings and distilling apparatus, to be 
appraised by two or more competent persons to be designated by him, 
and the said appraisal may be increased by the collector if in his 
judgment the same is too low, and the penal sum of said bond must 
be equal to such appraised value. This is in addition to the distiller’s 
bond required by section 3260, Revised Statutes, and a substitute for 
the ownership in fee of the distillery premises; and if the same sure¬ 
ties should be offered upon both bonds the collector will see that they 
are the owners of unencumbered real estate, as aforesaid, sufficient 
in value to cover their liability upon both bonds. 

Any person desiring to avail himself of the provisions of section 
3262 must make application to the Commissioner, showing, in case of 
a lease, that there was a valid subsisting and duly recorded lease, 
prior to July 20, 1868, under which he holds; and if not recorded, that 
the same was not required to be recorded by the laws of the State; if 
the title is in litigation, in what court the proceedings are pending, 


30 


the parties thereto, and the nature of their claims, and that such liti¬ 
gation was pending July 20, 1868; if a mortgage, the date and amount 
of the same, when recorded, by w T hom held, and when the same is due; 
and in case of incapacity to consent, the nature of said incapacity. 
In all cases a full and clear statement of the title to the estate should 
be given, and such application should have indorsed thereon the cer¬ 
tificate of the collector of the district that he has personally investi¬ 
gated the case and finds that the statements made are correct. 

Section 3262, Revised Statutes, as amended by the act of May 28, 
1880, provides for the acceptance of a leaseholder’s bond in case of the 
increase of distillery premises whereon a distillery had been erected 
prior to July 20,1868, by the addition of land or buildings adjacent or 
contiguous thereto not owned by the distiller himself in fee. 

The amount of bond is, however, dependent upon certain conditions: 

If the distillery be one which the distiller owns himself in fee, or in 
respect to which he has procured the written consent of the owner in 
fee, or incumbrancer, the bond is to be only for the appraised value of 
the addition to the premises. 

But if the distillery be one which the distiller is entitled to operate 
under a leaseholder’s bond, then the bond is required to be given 
for the appraised value of the whole distillery as increased by such 
addition. 

It is not essential for the acceptance of such bond in lieu of written 
consent, in either of these cases, that the owner or owners of the addi¬ 
tion to the premises should be legally incapable of giving consent, but 
it is absolutely required that the distillery shall have been erected 
prior to July 20, 1868. 

Personal sureties on such bonds must be required to justify on 
Form 33 in unencumbered real estate, in the same collection district 
or county or adjoining county in the same State in which the distillery 
is situated, equal in value to the penal sum of the bond. 

Section 3262, Revised Statutes, provides “ that, in case of any dis¬ 
tillery sold at judicial or other sale in favor of the United States, a 
bond may be taken, at the discretion of the Commissioner of Internal 
Revenue, in lieu of the written consent required by this section, and 
the person giving such bond may be allowed to operate such distillery 
during the existence of the right of redemption from such sale on 
complying with all the other provisions of law.” 

DISTILLERY WAREHOUSES. 

The law, section 3271, Revised Statutes, requires every distiller to 
provide, at his own expense, a warehouse suitable for the storage of 
distilled spirits, which must be situated on and constitute a part of his 
distillery premises. No dwelling house can be used for such purpose, 
and no door, window, or other opening can be made or permitted in 


31 


the walls of such warehouse leading into the distillery, or into any 
other room or building. No spirits can be stored in such warehouse 
except those manufactured by the distiller providing it. A portion 
of the distillery may be used for this purpose, but in such case it 
must be separated from the portion used for distilling by a solid 
brick or plank partition; and collectors will, when such warehouse 
is applied for, make careful examination as to the sufficiency of the 
division wall. The entrance to such room must be from the street or 
yard. If such warehouse is a separate building, it must be upon the 
premises actually occupied for the distillery. It must be a portion 
of the distillery building or a separate building on the distillery 
premises. 

Whenever any party or parties desire to commence the business of 
distilling, they must make a written application to the collector of the 
district in which the distillery is situated for the approval of a distill¬ 
ery warehouse. 

Applications for approval of warehouses must, in all cases, give the 
name or names of those who are to operate the distillery, and, if a 
company, the firm name of the company as well as the individual 
names, and if a corporation the corporate name only, the number of 
the distillery, and the precise location of the distillery premises, the 
material of which the warehouse is constructed, the size of warehouse, 
in width, length, and height, and number of rooms, describing par¬ 
ticularly all the openings and connections. If of rack construction, 
that fact should be stated. And such applications must be accom¬ 
panied by a sketch or diagram accurately representing the warehouse, 
with all its connections, openings, and surroundings, and also show¬ 
ing all other warehouses on the premises, if any, with dimensions 
and date of approval of each. 

The application may be made in the following form: 

To-: 

Collector of - District of -. 

Sir: The undersigned,-, doing business under the 

name or style of-, hereby make application for the 

approval of a distillery warehouse, which he ha provided as required 
by law, situated upon and constituting a part of-distillery prem¬ 
ises distillery No.-, at -, in the county of-and State 

0 f-.. Said distillery warehouse is constructed of-. 

(Here describe accurately the building or room proposed, as to size, 
stating the height, width, and depth; when a whole building, the 
number of stories and height of each story, and when a room an exact 
description of the building in which it is situated, and its precise loca¬ 
tion therein, and in every case describe all the openings, connections, 
and surroundings, and the materials of which constructed.) 

-, Distiller . 













32 


Upon the receipt of the application and diagram the collector will, 
himself or by one of his deputies, make a careful examination of the 
premises proposed, and if they are found to be in conformity with the 
requirements of law and regulations, and properly set forth in the 
application and diagram, will at once transmit the application and 
diagram to the Commissioner, accompanied by a certified report of 
his examination, giving the estimated storage capacity of the ware¬ 
house, in barrels stored three tiers high on each floor, or according to 
the rack system if that be used, and the means provided for securing 
the safe custody of the spirits. 

The collector’s report and recommendation may be in the following 
form, viz: 

I hereby certify that the premises described in the foregoing appli¬ 
cation for the approval of a distillery warehouse for the storage of 
distilled spirits to be produced by the applicant,-, at dis¬ 
tillery No. —, in the-district of-, have been duly examined 

by ----, and found to be in every respect as set forth in 

said application and the diagram hereto attached; that the said prem¬ 
ises are in strict compliance with all the requirements of law and 
regulations; and I estimate the storage capacity thereof at-bar¬ 

rels. I therefore recommend the approval of said warehouse. 


Collector of - District of -. 

At the time of transmitting the application and his report thereon 
to this office the collector should in all cases recommend some qualified 
storekeeper for assignment to the warehouse as soon as the same shall 
be approved. 

Applications for the approval of distillery warehouses can not be 
granted until a certified copy of the distiller’s notice to the collector, 
on Form 2 7a, and the plan and survey of the distillery have been 
received at this office and found to be correct, or in case of a distillery 
having a daily surveyed capacity of 30 gallons of proof spirits or 
less, until a copy of Form 270 has been received in lieu of a plan, and 
found to be correct. 

Should distillers have occasion to extend their distillery premises 
by adding thereto adjoining land or erecting additional buildings 
thereon to be used in connection with their business of distilling or 
for the storage of their spirits in bond, a new notice on Form 27 a 
must be given accordingly; and if additions to distillery warehouses 
are desired, applications for the approval of the same must be made 
and forwarded to this office in the same manner and with the same 
formalities as in the case of original warehouses. 










33 


CHANGE OF PERSON OPERATING DISTILLERY. 

In cases of changes in the person, firm, or company operating a 
distillery, where the former distiller or firm does not desire to imme¬ 
diately withdraw all the spirits stored in warehouse, the warehouse 
may be continued, as prescribed by the act of January 8,1874 (3271 a* 
Int. Rev. Compn.), which provides— 

That when from death or any other cause there shall be any change 
in the person, firm or company engaged in the business of distilling 
at any distillery, and the person, firm or company that by reason of 
such change ceases to carry on said business at such distillery has at 
the time of such change spirits in the distillery warehouse, it shall 
be lawful for the Commissioner of Internal Revenue, upon the writ¬ 
ten consent of the surviving principals and sureties interested, and 
under such rules and regulations, and upon such other conditions as 
he may prescribe, to permit the succeeding person, firm or company 
to use the distillery warehouse on the premises in the same manner as 
if it did not contain distilled spirits belonging to the original person, 
firm or company after setting apart and separating, by a secure and 
unbroken partition such portion of it as may be necessary for the 
storage and safe-keeping of the spirits distilled by the original per¬ 
son, firm or company during the period allowed by law for the 
removal of distilled spirits from distillery warehouses, or until said 
spirits are removed, and the tax paid thereon within that time. 
Provided , That nothing herein contained shall impair or in any way 
affect the lien existing at the time of such change under section one 
of the internal-revenue act of July twenty, eighteen hundred and 
sixty-eight, as amended, or other liabilities under any internal- 
revenue law, but the existence of such lien shall be no ground for 
refusing to approve the bond of the succeeding person, firm or 
company, anything in section eight of said act of July twenty, 
eighteen hundred and sixty-eight, as amended, to the contrary 
notwithstanding. 

In accordance with the provisions of the above act, whenever, from 
death or other cause, a change occurs in the person, firm, or company 
operating a distillery, the successor may commence business in the 
same distillery, using a portion of the existing warehouse without the 
withdrawal of the spirits distilled by and belonging to the old dis¬ 
tiller, after having separated by a solid, secure, and unbroken partition 
that portion containing the spirits belonging to said old distiller from 
the portion to be used by the successor. That portion designed to be 
used by the successor may be established as a distillery warehouse, 
and a storekeeper assigned by the Commissioner of Internal Revenue, 
upon notice being given by the successor, on Form 27 a, and compli¬ 
ance with all other requirements of law and regulations. 

In his notice on Form 27 a the successor will distinctly describe the 
warehouse, taking care to except from the description that portion 
used for the storage of the spirits belonging to the old distiller. He 
5G815—08-3 


34 


must also state that the portion to be used by him is separated from 
that used by the old distiller by a solid, secure, and unbroken partition. 

The new distiller will also be required to file with the application 
for approval of his warehouse the Avritten consent of all the princi¬ 
pals and sureties on the distiller’s and warehousing bonds of the old 
distiller, therein stating that the portion to be used by the new dis¬ 
tiller may be approved in the name of said new distiller; and said 
written consent must expressly stipulate that such approval shall in 
no manner affect the liability of the principals and sureties on the 
existing distiller’s and warehousing bonds of the old distiller. 

If, after the spirits of the former owner or firm have all been with¬ 
drawn from warehouse, the new owner or firm should desire to use 
the warehouse which has been excepted from the description in the 
first notice on Form 27 a, a new notice on said form must be given, 
embracing said warehouse, and then, upon the receipt of the required 
application and report, as hereinbefore provided, the same may be 
approved for the new proprietor. 

In all cases of change of interest or copartnership a new notice on 
Form 27 a, application for approval of warehouse, report and nomina¬ 
tion of storekeeper wdll be required; and in such cases collectors 
should not approve the bond of the new distiller until notified frt>m 
this office that the new warehouse has been approved as required in 
the case of new distilleries. 

Distillery warehouses will be continued as such until all the spirits 
stored therein are withdrawn as required by law and the conditions 
of the warehousing bonds, notwithstanding the distiller’s bond may 
not have been renewed, provided the necessary legal conditions of its 
establishment do not fail. 

CONTROL OF WAREHOUSE. 

Section 3271, Revised Statutes, pro Abides that the distillery ware¬ 
house shall be under the direction and control of the collector of the 
district and in charge of an internal-reA^enue storekeeper, and section 
3274, Revised Statutes, places such warehouse in the joint custody of 
the storekeeper and the proprietors thereof. The distiller shall on 
demand at reasonable times haA r e admittance, in the presence of the 
storekeeper, to the Avarehouse and the spirits deposited therein, and 
may, in connection Avith the storekeeper, refuse admittance to any 
person not a revenue officer. 

The only lock to the Avarehouse door must be the Government lock, 
the key of Avhich must at all times be in charge of the storekeeper. 

Distillers may haA T e access to the spirits in bond at any time, in the 
presence of the storekeeper, for the purpose of repairing cooperage, 
or to take any required measures to prevent waste by leakage, or for 


35 


other necessary purposes. The warehouse must never be opened or 
left open except in the presence of the storekeeper. 

The examination of spirits in warehouse by sample is allowed 
under the following restrictions: 

The aggregate quantity removed from any cask of spirits, while in 
warehouse, shall not exceed a half pint. 

No sample shall be taken from any package except by the owner, 
or by an agent upon a written order of the owner, nor shall any goods 
be exhibited or examined in the warehouse, except under the im¬ 
mediate supervision of the storekeeper in charge of the warehouse. 
Such storekeeper must keep a record of each sample taken in such 
a manner as will enable him to detect and to report with conclusive 
proof any attempted abuse of this privilege. 

(For regulations governing the withdrawal of samples for use of 
the United States see page 253 of Appendix.) 

DISCONTINUANCE OF WAREHOUSE. 

When a distiller who has given notice of suspension has withdrawn 
all the spirits from his distillery warehouse, the collector of the dis¬ 
trict is thereupon required to promptly report these facts to this 
office, giving the date of the last withdrawal, and also to recommend 
revocation of assignment of the storekeeper, and, unless operations 
are to be resumed at the distillery by the same distiller in a reason¬ 
ably short time, discontinuance of the warehouse should also be 
recommended. 

Section 3272, Revised Statutes, provides that— 

Whenever in the opinion of the Commissioner of Internal Revenue 
any distillery or other warehouse is unsafe or unfit for use, or the 
merchandise therein is for any reason liable to loss or great wastage, 
he may discontinue such warehouse, and require the merchandise 
therein to be transferred to such other w arehouse as he may designate 
and within such time as he may prescribe. Such transfer shall be 
made under the supervision of the collector, or of such other officer 
as may be designated by the Commissioner, and the expense thereof 
shall be paid by the owner of the merchandise. Whenever the owner 
of such merchandise fails to make such transfer within the time pre¬ 
scribed, or to pay the just and proper expense of such transfer, as 
ascertained and determined by the Commissioner, such merchandise 
may be seized and sold by the collector in the same manner as goods 
are sold upon distraint for taxes, and the proceeds of such sale shall 
be applied to the payment of the taxes due thereon and the costs and 
expenses of such sale and removal, and the balance paid over to the 
owner of such merchandise. 

Section 57 of the act of August 28, 1894, provides that— 

Whenever distilling shall have been suspended at any distillery for 
a period or periods aggregating six months during any calendar year, 


36 


and the quantity of spirits remaining in the distillery warehouse does 
not exced five thousand proof gallons, or whenever, in the opinion of 
the Commissioner of Internal Revenue, any distillery warehouse or 
general bonded warehouse is unsafe or unfit for use, or the merchan¬ 
dise therein is liable to loss or great wastage, he may in either such 
case discontinue such warehouse and require the merchandise therein 
to be transferred to such other warehouse as he may designate, and 
within such time as he may prescribe; and all the provisions of sec¬ 
tion thirty-two hundred and seventy-two of the Revised Statutes of 
the United States relating to transfers of spirits from warehouses, 
including those imposing penalties, are hereby made applicable to 
transfers to or from general bonded warehouses established under 
this act. 

Transfers of spirits from distillery warehouses under the foregoing 
provisions of law will be made to general bonded warehouses estab¬ 
lished under the act of August 28, 1894, and will be made upon the 
recommendation of the collector, who will report the facts fully in 
each case to the Commissioner of Internal Revenue, and will also 
recommend transfer to the general bonded warehouse most convenient 
and accessible to the distiller. 

For regulations concerning the establishment of general bonded 
warehouses, see No. 20. 

APPOINTMENT OF STOREKEEPERS AND STOREKEEPER-GAUGERS. 

There shall be appointed by the Secretary of the Treasury such 
number of internal-revenue storekeepers as may be necessary, who 
shall each receive such compensation, not exceeding $4 a day, to be 
paid monthly by the United States, as may be determined by the 
Commissioner of Internal Revenue. (Sec. 3153, Rev. Stat.) 

These appointments are made upon the recommendation of collect¬ 
ors to the Commissioner. 

Every storekeeper shall take an oath faithfully to perform the 
duties of his office, and shall give a bond, to be approved by the Com¬ 
missioner of Internal Revenue, for the faithful discharge of his 
duties. (Sec. 3153, Rev. Stat.) 

The Secretary of the Treasury may, upon the recommendation of 
the Commissioner of Internal Revenue, impose the duties of store¬ 
keeper and gauger upon one officer, where the amount of spirits pro¬ 
duced at the distillery to which such officer may be assigned is not 
sufficient, in the judgment of the Commissioner, to warrant the em¬ 
ployment of two officers to perform the separate duties of storekeeper 
and gauger. The Secretary of the Treasury may issue a commission 
to such officer as storekeeper-gauger, and when performing the com¬ 
bined duties of storekeeper-gauger, or when assigned by the Com¬ 
missioner of Internal Revenue to perform the duties of storekeeper 
only, he shall receive the compensation of storekeeper only; but when 


37 


assigned to perform the duties of gauger only, he shall receive the 
compensation of gauger only. The said officer shall, before entering 
upon the discharge of such duties, give a bond for the faithful dis¬ 
charge of his duties. (Secs. 3153 a and 3153^, compilation of 1900, 
as amended by the act of June 28, 1902.) 

By virtue of this authority the Secretary of the Treasury has, upon 
the recommendation of the Commissioner of Internal Revenue, im¬ 
posed the duties of storekeeper and gauger upon one officer at dis¬ 
tilleries having a surveyed capacity not exceeding 100 bushels of 
grain daily, and also at distilleries having a daily surveyed capacity 
exceeding 100 and not exceeding 500 bushels of grain which have 
suspended operations, and so long as operations thereat shall remain 
suspended. 

Where, however, at such suspended distilleries there are large 
quantities of spirits in warehouse and the business of bottling spirits 
in bond is carried on and withdrawals of spirits are large and fre¬ 
quent, so as to require the services of more than one officer, the Sec- 
retary has authorized the Commissioner, in his discretion, to assign 
thereto a sufficient number of officers to perform the separate duties 
of storekeeper and of gauger so long as the additional duties may 
require. 

Storekeepers at distilleries that mash less than GO bushels of grain 
per day shall be allowed not exceeding $50 per month. But when one 
person acts as storekeeper and gauger his salary shall not exceed $4 
per day for the time actually employed. (Sec. 3153&, compilation of 
1900.) 

Storekeeper-gaugers assigned to distilleries whose registered capac-. 
ity is 20 bushels or less shall receive $2 per day for their services. 
(Sec. 3153c. compilation of 1900, as amended by the act of June 28, 
1902.) 

The officer holding the combined office of storekeeper-gauger, under 
the provisions of the legislative, executive, and judicial appropria¬ 
tion act approved August fifteenth, eighteen hundred and seventy- 
six (Nineteenth Statutes, page one hundred and fifty-two), may be 
assigned by the Commissioner of Internal Revenue to perform the 
separate duties of a storekeeper at any distillery, or at any general or 
special bonded warehouse, or to perform any of the duties of a gauger 
under the internal-revenue laws. And the said officer, before entering 
upon the discharge of such separate duties, shall give a bond to be 
approved by the Commissioner of Internal Revenue for the faithful 
discharge of his duties in such form and for such amount as the Com¬ 
missioner may prescribe. (Sec. G4, act August 28, 1894; sec. 3153 
compilation 1900, as amended by the act of June 28, 1902.) 

That the internal-revenue officer holding the combined office of 
storekeeper and gauger shall hereafter be known and denominated as 
a storekeeper-gauger, and when performing the combined duties of 
storekeeper-gauger, or when assigned by the Commissioner of Inter- 


38 


nal Revenue to perform the duties of a storekeeper only at any dis¬ 
tillery, or at any general or special bonded warehouse, lie shall receive 
for his services the compensation of storekeeper only; but when as¬ 
signed by the Commissioner of Internal Revenue to perform the 
duties of gauger only, under the internal-revenue laws, as provided 
by those laws, he shall receive only the compensation for his services 
and the traveling expenses which are allowed by law to United States 
gaugers. (See act approved June 28, 1002.) 

Under Rule II of the civil-service rules as modified by the order of 
the President, gaugers, storekeepers, and storekeeper-gaugers whose 
compensation does not exceed $3 per day when actually employed and 
whose aggregate compensation shall not exceed $500 per annum, are 
excepted from the competitive classified service, but are subject to an 
examination prescribed by the Secretary of the Treasury. 

The compensation of an officer so appointed and qualified shall not 
exceed $3 per day or $500 for any fiscal year; nor shall he remain on 
duty in any fiscal year after his compensation limit of $500 has been 
reached. 

When the compensation limit of $500 is reached by a storekeeper- 
gauger under any assignment during any fiscal year, that assignment 
shall not be regarded as coming within the provisions of Civil Service 
Rule II during the succeeding fiscal year, but shall be filled by the 
assignment of one of the nonexcepted officers of the district or by an 
appointment from the civil-service eligible register. 

In case there is no unassigned officer of the nonexcepted class who 
is available for assignment, or no one on the eligible register who will 
accept the appointment, or no eligible register from which to select, 
then a Rule II officer may be assigned or a temporary appointment 
approved by the civil service district secretary may be made to fill 
the place. 

Storekeepers can not engage in any other business without the writ¬ 
ten permission of the Commissioner. All applications for permission 
to engage in other business while on duty as storekeeper must be in¬ 
dorsed and recommended by the collector of the district in which the 
storekeeper is on duty before they can be acted upon by the Com¬ 
missioner. 

All regulations and instructions as to storekeepers extend and apply 
to persons holding the combined office of storekeeper-gauger. 

ASSIGNMENT OF STOREKEEPERS. 

One or more storekeepers must be assigned to, and on duty at, each 
distillery warehouse before the distiller can commence operations. 

The Commissioner of Internal Revenue is alone authorized by law 
to assign storekeepers to duty, revoke their assignments, and fix the 
rate of their compensation while on duty. 


39 


Collectors of districts are required to nominate storekeepers for 
assignment to warehouses in time to prevent unnecessary and vexa¬ 
tious delays to the proprietors; but in no case will such nominations 
be made to take effect prior to the date operations are actually to be 
commenced at the distillery, nor will such officers be placed on duty 
prior to that date. In determining the number of storekeepers to be 
assigned to each distillery warehouse, the collector will take into 
account the construction and condition of the warehouse and distil¬ 
lery as to their security against theft and fire or other casualties, the 
location thereof, the character of the community in which situated, 
the facilities for illicitly distilling and disposing of the spirits, the 
capacity of the distillery, and length of time it is operated each day. 
In each case of a new warehouse the nomination or nominations 
should accompany the application for the approval of the same. 

The storekeeper will have charge of the warehouse to which he may 
be assigned, under direction of the collector controlling the same. 
The warehouse will be in the joint custody of the storekeeper and the 
proprietor thereof, and kept securely locked. The storekeeper will 
retain the key of the Government lock, and will not permit the same 
at any time to go into the possession of any other person or officer, 
except the collector or some person designated by the collector or by 
this office, in pursuance of law, to take his place; and the warehouse 
must at no time be unlocked or remain open unless in the presence of 
the storekeeper. 

In case of the absence of any storekeeper, by reason of sickness or 
from any other cause, the collector having control of the warehouse 
may designate a competent person to have temporary charge of such 
warehouse, who shall, during such absence, perform the duties, be 
subject to all the liabilities, and receive the pay of the storekeeper 
for the time such person may be so employed. But this power of col¬ 
lectors to make temporary designations is limited to filling vacancies 
occasioned by the absence of regularly assigned storekeepers, and 
they are not authorized to make such a designation where there is not 
an existing assignment b} T the Commissioner. In cases of death, 
where distillers would be obliged to suspend operation before a regu¬ 
lar appointment and assignment could be made, collectors may desig¬ 
nate temporary storekeepers. But such a designation as is above pro¬ 
vided should not be allowed to continue beyond the shortest period 
requisite to perfect a regular assignment through this office, or, when 
necessary, to have an officer duly appointed and commissioned for 
that purpose. 

This provision is applicable also to storekeeper-gangers, and the 
person designated to take charge of a warehouse in the absence of 
such an officer will be competent to perform all his duties both as 
storekeeper and as gauger. 


40 


Where it is found necessary, because of an emergency, to employ a 
person to act in the capacity of storekeeper or storekeeper-gauger at 
a distillery where there is no existing assignment by the Commis¬ 
sioner, and a temporary appointment by the Secretary is necessary, 
the collector will immediately after placing such person on duty 
report his action to this office by letter and also on Form No. 2^1, i n 
order that the proper action may be taken. 

Collectors will give immediate notice of such designations on Form 
241 and report the same so long as they may continue on Form 242. 

Storekeepers being under the immediate direction and supervision 
of collectors, collectors are required to furnish this office promptly 
with all necessary information touching their assignment to,' relief 
from, and the manner in which they perform their duties. 

In all cases where the circumstances and interests of the service 
will permit, it is preferable that changes in the assignments of store¬ 
keepers should be so made that their terms of service at each ware¬ 
house may commence and end with the beginning and close of the 
month, so that each month’s account of a warehouse may be made in 
full by one storekeeper. 

Collectors may require regularly assigned storekeepers to remain 
on duty on Sundays and Sunday nights whenever in their opinion it 
is necessary to protect the interests of the Government; and such 
storekeepers are entitled to compensation for all the time they are 
actually on duty under such instructions at the rates fixed in their 
assignments, respectively. Collectors ordering storekeepers to duty 
on Sunday should do so in writing, stating the reasons therefor, and 
storekeepers’ monthly accounts should be accompanied by copies of 
such orders. 

Collectors are required to report promptly to this office the day 
when each storekeeper in their respective districts begins and ceases 
duty under each assignment, and each case where they order store¬ 
keepers to duty on Sundays or Sunday nights; and neglect of these 
requirements should be carefully avoided. Where storekeepers con¬ 
tinue on duty after the date of the revocation of their assignments, 
their monthly accounts can not be allowed until the reports herein 
required are furnished. 

When the assignment of a storekeeper is revoked and another 
storekeeper assigned in his place, his account for pay for that month 
must bear the indorsement of the collector, showing the date on which 
his services ceased. 

Whenever a storekeeper resigns or is reported for removal or dis¬ 
missal from office, the resignation or report must be accompanied by a 
statement from the collector as to whether the storekeeper is under 
assignment or not. If the storekeeper who is leaving the service is 
under assignment, the collector should, at the time of or before for- 


41 


warding the resignation or report, nominate some other regularly 
qualified storekeeper for assignment in his place or give proper 
reasons for dispensing with the services of a storekeeper at the place 
of assignment. 

Collectors are required to report promptly to this office whenever a 
distillery suspends operations, and where night or additional store¬ 
keepers are under assignment to the warehouse thereto attached they 
will be considered relieved from duty as of the date on which the 
suspension takes place, unless reasons are given for retaining them 
on duty. In determining whether night storekeepers should remain 
on duty during suspensions, collectors will be governed by the same 
conditions as are herein prescribed for determining the number of 
storekeepers required at each warehouse upon commencing business, 
and be held in like manner responsible for their retention whenever 
their presence is necessary. 

Collectors will, when operations are suspended at any distillery 
having a daily surveyed capacity exceeding 100 and not exceeding 
500 bushels, immediately relieve the storekeeper or storekeepers as¬ 
signed to the warehouse and place such warehouse in charge of a 
storekeeper-gauger and report his action to the Commissioner of 
Internal Kevenue with suitable recommendation, if there be no such 
officer already on duty thereat performing the separate duties of 
storekeeper only, unless the suspension is known to be temporary only, 
or the warehouse contains large quantities of spirits and the business 
of bottling spirits in bond is carried on and withdrawals are large 
and frequent, so as to require the services of more than one officer. 

If, however, the quantity of spirits in warehouse at the time of sus¬ 
pension does not exceed 5,000 gallons, the collector will place the 
warehouse in the hands of a general storekeeper-gauger designated 
for that purpose. 

When operations are resumed at a distillery having a daily sur¬ 
veyed capacity exceeding 100 and not exceeding 500 bushels, the ware¬ 
house of which has been in charge ,of a storekeeper-gauger during sus¬ 
pension, the collector will, if the storekeeper-gauger is to be con¬ 
tinued thereat in his separate capacity of storekeeper only, recoin-- 
mend that his assignment as storekeeper-gauger be revoked and 
that he be reassigned to act in the separate capacity of storekeeper 
only, and will make like recommendation if the storekeeper-gauger 
is to be succeeded by another person as storekeeper. Like recom¬ 
mendation will also be made if the storekeeper-gauger is to be as¬ 
signed to the same distillery or elsewhere in the separate capacity 
of gauger only. 

A sufficient number of storekeepers will be provided to enable a 
distiller to properly conduct his business, and so that the bonded 
warehouse may be open during the business hours of the day when 


42 


it is necessary for the distiller to enter. It is not believed, however, 
that it will be necessary, except in rare instances, for the distiller or 
the owner of the spirits to enter the warehouse after the working 
hours of the day. 

It should be borne in mind that the storekeeper is in no sense a 
watchman in the interest of the distiller or the owner of the spirits. 
The storekeeper is placed in charge of these premises solely in the 
interest of the Government. Collectors will be careful, therefore, 
not to recommend the assignment of a night storekeeper at a sus¬ 
pended distillery unless there are some special reasons which require 
his presence there in the interest of the Government, or where it 
would be unfair or unjust to the taxpayer to dispense w T ith his 
presence. 

Collectors will be careful to impress upon taxpayers two things: 

First, that a night storekeeper w r ill not be assigned to duty at a 
warehouse during the suspension of the distillery simply as a guard 
or watchman in the interest of the distiller, and, second, that this 
office will not decline to assign storekeepers at such distilleries where 
the presence of a storekeeper might be necessary to prevent injury or 
loss to the taxpayer, which the taxpayer could not protect himself 
against by the use of reasonable care. 

Whenever a collector shall deem it advisable that a night store¬ 
keeper should be assigned to duty at a bonded warehouse during the 
suspension of the distillery, he will furnish to this office a full and 
complete statement of all the facts involved, and his reasons in detail 
in regard to the same. 

Whenever any distillery premises are seized, together with the 
spirits in the distillery warehouse, the storekeeper or storekeepers 
must be considered as relieved from duty under his or their assign¬ 
ment after the date of the seizure and during its continuance. But 
if it is deemed advisable by the seizing officer, a storekeeper may be 
placed in charge of the property as keeper while it is under seizure, 
and his proper fees as keeper while so in charge paid in the same 
manner as the other incidental expenses of the seizure. 

Storekeepers not on duty should not remain under assignment, and 
whenever any storekeeper is off duty, the collector of the district 
should promptly notify this office of the cause and date when he 
ceased duty, so that his assignment may be revoked. 

Storekeepers can not enter upon their duties until they have been 
assigned by the Commissioner, and are only entitled to compensation 
for such time as they are actually employed in the performance of 
their official duties under such assignment. 

All recommendations for assignments, revocation of assignments, 
and transfers of storekeepers will be made on Form 241, heretofore 
prescribed, and in no case will Form 242 be used for this purpose. 


43 


ASSIGNMENT OF STOREKEEPER-GAUGERS TO SEPARATE DUTIES OF STORE¬ 
KEEPERS OR GAUGERS AND COMPENSATION THEREFOR WHEN SO AS¬ 
SIGNED. 

Assignments of officers holding the combined office of storekeeper- 
gauger to perform the separate duties of a storekeeper at any dis¬ 
tillery or at any general or special bonded warehouse, or to perform 
any of the duties of a gauger under the internal-revenue laws, will 
be made by the Commissioner of Internal Revenue upon the recom¬ 
mendation of the collector of the district, after such officer shall have 
given bond in the prescribed form and amount, and the same shall 
have been approved by the Commissioner. 

It will be observed that officers holding the combined office of store¬ 
keeper-gauger can only be assigned to duty in the separate capacity 
of storekeeper or of gauger by the Commissioner of Internal Revenue. 

A storekeeper-gauger under an assignment by the Commissioner 
to act in the separate capacity of gauger, such assignment not speci¬ 
fying any particular place or kind of duty, may be continuously 
employed in that capacity, and transferred by the collector froth one 
place or kind of duty to another without an additional assignment, 
but he can not, until such assignment is revoked by the Commis¬ 
sioner, be assigned to perform the separate duties of storekeeper or 
the combined duties of storekeeper-gauger. 

When a storekeeper-gauger is assigned to duty in the separate 
capacity of storekeeper he will receive a per diem compensation as 
storekeeper. When assigned to dut} T in the separate capacity of 
gauger his compensation will be by fees, to be determined by the 
quantity gauged, together with his actual and necessary traveling 
expenses. 

It is desirable that an officer of this class should not be assigned to 
the separate duties of a storekeeper and to the separate duties of a 
gauger, or to the combined duties of a storekeeper-gauger and to 
the separate duties of a gauger during the same calendar month, 
except in some emergency when the services of another officer can 
not be had. 

Collectors will make immediate recommendation for all such 
assignments on Form 241, and make report of the same on Form 242. 

ASSIGNMENT OF GENERAL STOREKEEPERS. 

When operations are suspended at any distillery and the quantity 
of spirits remaining in bond in the distillery warehouse does not 
exceed 5,000 gallons, collectors are instructed to relieve the store¬ 
keeper under assignment to such warehouse and require him to turn 
over the keys, books, and papers to a storekeeper who will be desig¬ 
nated, upon the nomination of the collector, to take charge of all such 
distillery -warehouses in his district. 


44 


The storekeeper thus designated for special duty will only be 
required to be present at the various warehouses to which he may be 
assigned when it is necessary to open them to make withdrawals, or 
for other necessary purposes, as prescribed in regulations. He should 
have his desk and keep his records in the collector’s office, where he 
himself will remain during office hours when not on warehouse duty. 

Should collectors have any doubt as to the responsibility of the 
bondsmen on any of the warehousing bonds covering spirits remain¬ 
ing in bond, as above stated, they will call for new warehousing bonds. 

INSPECTION OF WAREHOUSES AND THEIR CONTENTS BY GENERAL 
STOREKEEPER-GAUGERS. 

In order to detect and prevent excessive losses from packages of 
distilled spirits lying in distillery warehouses in charge of a general 
storekeeper-gauger, he should, when visiting such warehouses to 
make withdrawals or for other necessary purposes, carefully examine 
the warehouses and all the packages therein to ascertain their condi¬ 
tion, and will note on the monthly report (Form 87) from month to 
month the date of his last visit to such warehouse, the condition of 
the same, and also the condition of the packages stored therein. 

Collectors will see that general storekeeper-gaugers comply strictly 
with this requirement, and, if not wholly impracticable, they should 
be required to visit the several warehouses in their charge at least 
once during each month, even though they may not have occasion to 
make such visit for the purpose of making withdrawal of spirits or 
for other necessary purposes. 

He should also select such reasonable number of packages as are 
conveniently accessible for the purpose and may fairly represent the 
whole, and take the wantage and the proof of the spirits, and make 
a special return of such gauge on Form 59, together with a report of 
the appearance and condition of all the packages in the warehouse, 
and also of the condition of the warehouse at the date of visit. If 
the inspection should disclose such losses as indicate a general bad 
condition of cooperage, or possibly a tampering with the contents of 
the barrels, the regauge should include all the packages in the ware¬ 
house. This return and report will be made to and filed with the 
'collector of the district. Upon receipt of such returns and reports 
collectors will cause them to be immediately examined with care and 
will promptly take whatever action may be requisite for the protection 
of the revenue. 

The distiller should be at once required to tax-pay and withdraw 
packages having an excessive loss, and to repair defective packages 
which require attention; and to make such repairs, if any, as are 
necessary to keep the warehouse safe and secure, and prevent loss or 
wastage of the spirits stored therein. In case of failure on the part 


45 


of the distiller to full} 7 and promptly discharge his duties in these 
respects, collectors will duly report the facts to this office. 

DUTIES OF STOREKEEPERS. 

Storekeepers are required to be present at their places of duty dur¬ 
ing the hours for which the} 7 are assigned. Those assigned to day 
duty are required to be present at the place of duty during all the 
hours of the day, and night storekeepers during all the hours of the 
night, whether the distilleries are operated or not. Where both day 
and night storekeepers are assigned, neither should leave the place of 
duty until relieved by the other. In no case will a storekeeper be 
allowed pay for more than one day in each consecutive twenty-four 
hours constituting a day, notwithstanding he may remain on duty 
beyond the hours of his assignment. 

Storekeepers are required to be on duty and in daily attendance at 
the warehouses to which they are respectively assigned until relieved; 
and where a distillery is under suspension, and all spirits are with¬ 
drawn from the warehouse, the collector will require the storekeeper 
to report the fact of the withdrawal of the last spirits on the day on 
which it occurs, and the storekeeper will be considered as relieved 
from duty at the close of that day. Collectors are required to report 
all such cases promptly to his office, giving the date of the last with¬ 
drawal in each case. The last withdrawal of spirits is not considered 
complete until the spirits are all actually removed from warehouse 
and the tax paid or export stamps all affixed; and the date herein 
required to be given is that on which the withdrawal is so completed. 

If the interests of the Government require the presence of a store¬ 
keeper at a distillery during the hours of night, the same interests 
certainly demand that he shall know what transpires at the distillery 
during all the hours of his assignment, and the same degree of vigi¬ 
lance is expected from st or cheepers assigned to night duty as is re¬ 
quired of those on duty during the day. 

For absence from the distillery during the hours for which lie is 
assigned the officer is liable to summary removal from office, and to 
fine and imprisonment if the neglect to perform his duty be willful or 
fraudulent. Xo excuse, short of absolute necessity, is receivable for 
the offense. 

The special attention of officers and distillers is directed to the pen¬ 
alties imposed in section 3284, Eevised Statutes, for mashing, dis¬ 
tilling, or removing spirits in the absence of the storekeeper or per¬ 
son designated to act as storekeeper. Any mashing or distilling at 
any time when the storekeeper is not present is prohibited. 

The storekeeper assigned to any distillery warehouse has charge, by 
express provisions of law, both of the warehouse and of the distillery, 
under the direction of the collector. 


46 


It is his official duty, for the due discharge of which he is held 
responsible, to see that the distillery is in full accordance w T ith law, 
both in its construction and in its operations; that true and complete 
records and reports are made by the distiller and by himself as by law 
and regulations required; and that the entire product of the distillery 
is entered into warehouse and only withdrawn therefrom according to 
law. He must take the weight and measure of all material received 
upon the distillery premises, and will not allow any to be stored 
thereon without first complying with this requirement and making the 
proper entries of the same in the appropriate book of accounts. 

The storekeeper must ascertain and record the weight and measure 
of all material to be used in mash before allowing it to be put into 
the mash tubs. 

The absence of scales and other facilities for determining the weight 
and measure will not be received as sufficient excuse for not perform¬ 
ing this duty, unless the official files shall show that the storekeeper 
has reported their absence and taken all reasonable steps to have 
them furnished. 

Where the scales are set for weighing off the meal put into the 
mash tub, it is the storekeeper’s duty from time to time to test their 
accuracy, and any want of accuracy should be immediately reported 
to the collector. The use of material in the mash tub without weight 
and measure, or the existence of facilities for crowding or thickening 
the mash without the knowledge of the storekeeper will, upon being 
ascertained, be considered sufficient grounds for dismissal, unless the 
official record shows that such use and such facilities have been 
reported by him in writing to the collector. 

Every storekeeper must make himself thoroughly conversant with 
the distillery premises and all the apparatus used in the business of 
distillation, examine the plan (when a plan is required) and survey 
in the office of the distillers, and carefully note whether the facts are 
accurately set forth therein. 

He is to note carefully the character and condition of all connec¬ 
tions, pipes, tubs, or vessels used for conducting spirits in the course 
of -their distillation, to see if they are continuous and closed, as 
required, and if the distiller can have any access to the spirits while 
in transit, and report at once any condition of the apparatus not in 
accordance with requirements. 

He will see that the cistern room is constructed as required in 
instructions headed “ Cistern room,” page 13, and will also note the 
condition of the warehouse, and see that it is a suitable and secure 
place for the storage of spirits, and promptly report any lack of 
security to the collector. 

He is required to be present at the drawing of all spirits from the 
receiving cisterns, and at the gauging, marking, branding, and stamp- 


47 


ing of all packages of spirits put up on the distillery premises, and is 
held jointly responsible with the gauger that all the mechanical duties 
connected therewith are faithfully performed. 

The storekeeper will see that all spirits, the manufacture of which 
is completed each day, are conveyed to the receiving cisterns on the 
same day; and he will not change the flow of spirits into another 
receiving cistern until the spirits belonging to a given day have been 
run into its appropriate cistern. 

Storekeepers will bear in mind that the serial numbers must com¬ 
mence with number one (No. 1) on the first cask deposited, taking 
special care that no two casks warehoused at the same distillery be 
marked with the same serial number. 

A change in the person or persons operating a distillery will not be 
taken to require a new series of numbers for the packages of distilled 
spirits thereafter produced and warehoused at such distillery; but the 
established series will be continued without regard to a change in 
persons. 

The warehouse and its contents should receive the storekeeper’s 
utmost care and attention. He should require that it be kept in good 
and safe condition, and that the spirits stored therein be not liable to 
loss or wastage. 

If there is any violation of law or irregularity on the part of the 
distiller, the storekeeper must make immediate report of the same to 
the collector and to the Commissioner, and for any neglect to do so 
he will be dismissed. Where a distillery is closed on account of any 
violation of law which is reported by the storekeeper, such store¬ 
keeper will be promptly assigned to another warehouse. 

The position of storekeeper is one of special confidence and trust, 
and the faithful discharge of the duties pertaining thereto will entitle 
the officer to the favorable consideration of this office. No officer can 
be said to faithfully discharge his duties who is found absent from 
his post during the assigned hours, nor who fails in accomplishing the 
purposes of his appointment; and it is expected that the services ren¬ 
dered will, in every instance, be of a character which will commend 
the officer to confidence. 

storekeepers’ distillery records. 

Storekeepers are required to keep the following records: 

Eecord of storekeepers at registered distilleries, No. 17, in which 
will be entered, in the proper columns, the materials on hand at the 
first of the month, materials received and used for the production of 
spirits during the month and on hand at the close of the month, fuel 
used for the production of spirits during the month, a complete record 
of the fermenting tubs filled and emptied, the quantity of finished 


48 


spirits run into the receiving cisterns in the cistern room each day, and 
the quantity drawn from the receiving cisterns, repairs made, and 
workmen employed. 

Storekeepers will also enter on some portion of this record not 
otherwise used the daily product of high wines run into the high- 
wine receiver in the redistilling or rectifying room; and also note 
thereon the removal of fusel oil and distilled w T ater. The monthly 
reports on Forms 88 and 88J should be made from this record. 
Book No. 16 will be used for this record at rum distilleries. 

Record No. 1TJ will be kept as a supplement to and as a part of 
No. IT at those distilleries where materials are purchased or received 
from so large a number of persons each day that an itemized account 
can not be kept on No. IT. In such cases only the total quantity 
purchased or received each day will be entered in No. IT, and in the 
column “ Purchased from ” will be entered the pages of No. 1T|- con¬ 
taining the items from which the totals are obtained. 

Storekeepers coming on duty at a distillery where work is being 
resumed after suspension are required to make an entry in Record 
No. IT of all repairs made on the distillery or distillery premises, and 
of all the material received thereon during the period in which w T ork 
was suspended thereat. Distillers will be required to afford all the 
facilities in their power to enable storekeepers to make the proper 
entries of these facts. 

The storekeeper is required to record the hour and minute when the 
fermenting period for each fermenting tub, as adopted by the dis¬ 
tiller, begins, and to measure the dry inches and calculate the quantity 
in each tub, and to note the temperature and gravity of the beer 
therein when filled, and to note temperature and gravity at 12 noon 
on each day thereafter, and enter the same in his book. He must also 
record the hour and minute when each fermenting tub is emptied, 
the dry inches, quantity in each tub, and the temperature and gravity 
of the beer at that time, and if the tub is emptied before the end of 
the fermenting period he must see that it is not again filled during 
that period; and any irregularity on the part of the distiller in either 
of these respects must be forthwith reported to the collector and to 
the Commissioner of Internal Revenue . The entries of the dry inches 
and quantities of mash in each tub on his books must be made by 
him from actual measurement. 

storekeepers’ warehouse records. 

Section 3301, Revised Statutes, as amended, provides that— 

Every storekeeper shall keep a warehouse book, which shall at all 
times be open to the examination of any revenue officer, and shall 
enter therein an account of all articles deposited in the warehouse to 


49 


which he is assigned, indicating in each case the date of deposit, by 
whom manufactured or produced, the number and description of the 
packages and contents, the quantities therein, the marks and serial 
numbers thereon, and by whom gauged, inspected, or weighed, and if 
distilled spirits, the number of gauge or wine gallons, of proof gal¬ 
lons, and of taxable gallons; and before delivering any article from 
the warehouse he shall enter in said book the date of the permit or 
order of the collector for the delivery of such articles, the number and 
description of the packages, the marks and serial numbers thereon, 
the date of delivery, to whom delivered, and for what purpose, which 
purpose shall be specified in the permit or order for delivery; and in 
case of delivery of any distilled spirits the number of gauge or wine 
gallons, of proof gallons, and of taxable gallons shall also be stated; 
and such further particulars shall be entered in the warehouse books 
as may be prescribed or found necessary for the identification of the 
packages, to insure the correct delivery thereof and proper account¬ 
ability therefor. 

And every storekeeper shall furnish daily to the collector of the 
district a return of all articles received in and delivered from the 
warehouse during the day preceding that on which the return is 
made, and mail at the same time a copy thereof to the Commissioner 
of Internal Revenue, and shall, on the first Monday of every month, 
make a report in duplicate of the number of packages of all articles, 
with the respective descriptions thereof, as above provided, which 
remained in the warehouse at the date of his last report, of all articles 
received therein and delivered therefrom during the preceding month, 
and of articles remaining therein at the end of said month. He shall 
deliver one of these reports to the collector having control of the ware¬ 
house, to be recorded and filed in his office, and transmit one to the 
Commissioner of Internal Revenue, to be recorded and filed in his 
office. 

This section, as amended, requires the storekeeper to enter in his 
warehouse book, Form 18, and to state in his daily return, Form 86, 
and his monthly return, Form 87, the number of taxable gallons de¬ 
posited in the warehouse or withdrawn therefrom, as the case may be, 
in addition to the number of wine gallons and proof gallons. The 
storekeeper will also keep the record book, Form 58. See instructions 
as to use of these books printed on inside of cover. Storekeepers on 
duty at special bonded warehouses will keep the books A 17 and A 18; 
those on duty at general bonded warehouses will keep the Book No. 88. 

As under the provisions of the act of August 28, 1894, the whole 
taxable gallons and tenths of taxable gallons are identical with the 
whole proof gallons and tenths of proof gallons except in the rare 
cases pointed out in Circular No. 436 storekeepers are not required to 
state proof gallons separately in their warehouse books, 18, A 17, 
A 18, 58, and 88, nor in their reports, 86, 87, A 86, A 86J, A 87, 354, 
355, and 356. 

56815—08-1 



50 


SPECIAL RECORD TO BE KEPT BY STOREKEEPER-GAUGERS AT CERTAIN SMALL 

DISTILLERIES. 

A book. No. 85, lias been provided and prescribed to be kept by 
storekeeper-gaugers assigned to distilleries having a surveyed daily 
spirit-producing capacity of 30 gallons of proof spirits or less. 

This record will be kept in addition to and not as a substitute for 
any other record required to be kept at distilleries. 

Entries will be made in accordance with the printed instructions 
accompanying the record. 

STOREKEEPERS’ REPORTS. 

Storekeepers will, on or before the fifth day of each succeeding 
month, make monthly abstracts in duplicate on Forms 88 and 88J, 
and the following instructions must be literally complied with in each 
and every case: 

The storekeeper at each distillery must, at the first of the month, 
take an accurate account of the materials on hand and report the 
same on Form 88, under the heading “ On hand at first of month,” in 
the “Account of materials,” being careful to note each kind of mate¬ 
rial separately, in pounds and bushels, or in gallons, or both, as the 
case may be. 

He will keep an accurate record of all materials received during 
the month, and enter the total quantity of each kind of material so 
received under the heading “ Received on the distillery premises 
during the month.” 

These last items, added to the quantity on hand at first of month, 
will form the total to be entered in the first column, headed “ Total.” 

Under the head of “ Used for the production of spirits during the 
month ” the storekeeper will enter the total quantity of each kind of 
material actually put in mash during the month. 

He will take account of and enter, under head of “ On hand at last 
of month,” the total quantity of each kind of material on the distil¬ 
lery premises and not in mash, after the close of business on the last 
day of the month for which the abstract is made. 

The combined items of the last two columns, “ Used for the produc¬ 
tion of spirits ” and “ On hand at last of month,” will form the total 
to be entered in the second column, headed “ Total.” 

Under the head of “ Waste ” he will enter the total waste found by 
actual measurement, and any loss not due to handling or exceeding 2 
per cent of grain used must be explained. 

In the account of materials used, on the lower portion of their 
monthly abstracts, Form No. 88, storekeepers will enter first the 
amount of mash or beer on hand at the close of the preceding month. 
Under this they will enter the quantity of material used during the 


51 


month, with the quantity of mash or beer produced therefrom, and 
from the amount of these two items deduct the quantity of mash or 
beer on hand at the end of the month. 

In the account of spirits, storekeepers will enter opposite the date of 
each working day the quantity of spirits produced—that is, run into 
the cistern room before midnight of that day—as shown by subsequent 
inspection of same, and also the quantity gauged and removed to 
warehouse or transferred to the denaturing bonded warehouse that 
day. 

The account of spirits produced during the month will include all 
spirits run into the receiving cisterns up to midnight of the last day 
of the month; and the quantity drawn off and warehoused or trans¬ 
ferred direct to denaturing bonded warehouse the succeeding month, 
if any, will be entered on the storekeeper’s monthly abstract. Form 88, 
and the distiller’s monthly return, Form 14, in separate items. 

Storekeepers at distilleries where spirits in large quantities under¬ 
going various processes of manufacture are held outside the cistern 
room will make a statement of the same as required by the blanks and 
instructions on Form 88, revised, under the heading u Statement of 
spirits distilled, but not run into cistern roomy 

It is the duty of the storekeeper to know that all entries and reports 
made by him are correct. He has no right to estimate, or to trust to 
the information received from the distiller, or anyone in his employ. 
He is placed on duty, not to receive and record the reports of the dis¬ 
tiller or his employees, but to keep a record of transaction of which 
he is required to have a personal knowledge. The quantity of beer in 
a tub at the time it is emptied is not the subject of an estimate, but 
is to be determined by actual measurement; and the quantity made 
and used during the month, or on hand at its close, can and must be 
determined in the same way; and the entries upon the Form 88 will 
be taken as his official certificate that the quantities there entered are 
literally correct. 

In filling up “ Form 88J ” the storekeeper will enter, under the 
head “ Fermenting tubs filled,” the number of each tub filled, taking 
one line for each tub, and under the heading “ Day ” he will enter the 
day of the month, and under the heading “ Hour ” he will enter the 
exact hour and minute, a. m. or p. m., when the filling of the tub 
begins, or when the tub is actually full, as the distiller may elect. 
The distiller may adopt either time as the begining of his fermenting 
period, but no change will be permitted without notice to the collector 
on Form 27 a. 

The storekeeper will enter upon Book No. 17, and also upon each 
Form 88J, that the fermenting period begins “ When filling of tub 
begins,” or “ When tub is full,” as the case may be, and will note the 
hour and minute accordingly. 


In filling the columns under the headings “ Fermenting tubs emp¬ 
tied,” storekeepers will be particular to record the exact hour and 
minute at which each fermenting tub is actually empty. The fer¬ 
menting period will be noted on Form 88J. 

In molasses distilleries where rum is produced, and the tubs are set, 
fed, and filled as is usual in making what is known as “ New England 
rum,” the time the first material is put into any tub will be entered 
on Form 88J as the time such tub was filled. 

These forms will be carefully examined at this office, and any irreg¬ 
ularity on the part of the distiller or carelessness on the part of the 
storekeeper will be dealt with as provided by law. 

Storekeepers must make a report daily on Form 86, during all the 
time they are in charge of the distillery warehouse, when spirits are 
entered into or withdrawn from the warehouse. In no case must the 
transactions of more than one day appear upon Form 86. If the dis¬ 
tillery shall be closed, the storekeeper will, until relieved from duty, 
continue to make a daily report as above. This report must show the 
number of packages of spirits received into and taken out of ware¬ 
house during each day, the serial numbers of the packages, serial 
numbers of the warehouse stamps, the serial numbers of the tax-paid 
stamps and of the export stamps, and the wine and taxable gallons, 
when and by whom gauged, to whom delivered, and for what pur¬ 
pose ; also of the warehousing stamps when the spirits are transferred 
to a general bonded warehouse. It will also show the actual quantity 
in wine gallons lost and the quantity in taxable gallons allowed.- It 
will also show the number of packages and contents lost by casualty, 
stolen, etc. 

If the Secretary of the Treasury abates the tax on a portion of the 
contents of any package, the storekeeper will affix a label to the pack¬ 
age showing the number of gallons on which the tax is abated, with 

the words “Allowed-, 190—, as casualty, under section 3221, 

Revised Statutes,” stating the proper date after the word “ allowed.” 
He will also take credit for this allowance on Forms 86 and 87, as for 
the day he is informed of such allowance. 

In case of withdrawals of packages for export, for transfer to 
manufacturing warehouses, for scientific purposes, or for use of the 
United States, the excessive loss must in all such cases be tax paid and 
reported on Form 86. 

The same report of wine and taxable gallons and proof gallons as 
per last regauge as to spirits transferred to bottling warehouse should 
be made in the monthly warehouse report, Form 87, care being taken, 
in all cases where required, that the serial numbers of the packages, 
the serial numbers of the warehouse stamps, and the serial numbers 
of the tax-paid stamps, export stamps, or warehousing stamps, are 
reported on Forms 86 and 87. 



53 


Storekeepers designated as general storekeepers to take charge of 
warehouses at distilleries where operations are suspended will only be 
required to make daily reports on Form 8G to this office, and to the 
collector when withdrawals are made. 

In case of spirits withdrawn for export in bond, the storekeeper 
will enter on Form 8G the serial number of the export stamps in place 
of serial number of tax-paid stamps. When spirits are withdrawn 
from warehouse on payment of tax and for some other purpose, as 
for export in bond; for transfer to manufacturing warehouses or 
general bonded warehouses, or for scientific purposes or use of the 
United States, on the same day, the storekeeper will make separate 
entries in his report, Form 86, of each class of withdrawals. Those 
for export, for transfer to manufacturing warehouses or general 
bonded warehouses, for scientific purposes or use of the United States, 
should be written in red ink. Similar distinct entries of withdrawals 
for consumption, for export, and for other purposes, should also be 
made in the distillery-warehouse record and on the monthly report, 
Form 87. 

The monthly return, Form No. 87, must show the quantity of spirits 
in warehouse on the first day of the month, before any spirits are 
entered or withdrawn, the quantity entered and withdrawn during 
the month, which will of course agree with the footings on his ware¬ 
house book, and the aggregate of his daily reports on Form 86, and 
the quantity in warehouse on the last day of the month, after the 
close of business for that day. The quantity of spirits of each month’s 
production remaining in warehouse on the last day of the month 
must also be reported on the appropriate lines (inside pages) of 
Form 87; and great care should be exercised in reporting these out¬ 
standing balances from month to month. 

Each report on Form 86 intended for the Commissioner of Internal 
Revenue will be mailed to him by the storekeeper on the evening of 
the day for which it is rendered, with the gauger’s report or reports 
on Form 59. The gaugers’ reports should be pinned to the Forms 86, 
so that they will not become detached when the envelope containing 
said forms is opened. 

TRANSFER OF STOREKEEPERS AND STOREKEEPER-GAUGERS. 

All storekeepers and storekeeper-gaugers assigned to distillery 
warehouses and all storekeeper-gaugers assigned to general bonded 
warehouses' and to special bonded warehouses will be changed at such 
times as, in the opinion of the collector or Commissioner of Internal 
Revenue, shall promote the best interests of the service. These 
changes in assignment will be made by the Commissioner upon the 
recommendation of the collector. 


54 


Collectors will make transfers of gaugers and storekeeper-gaugers 
assigned by the Commissioner in the separate capacity of gauger to 
no particular place or kind of duty at such times as in their opinion 
shall promote the best interests of the service. 

All necessary transfers from one district to another will be made by 
the Commissioner upon the joint recommendation of the collectors of 
the two districts. 

PAY AND TRAVELING EXPENSES OF STOREKEEPERS AND STOREKEEPER- 
GAUGERS WHEN TRANSFERRED. 

Section 3154a, compilation of 1900, reads as follows: 

That storekeepers, and storekeepers and gaugers, when transferred 
from one distillery to another, either in the same district or in different 
districts, shall receive compensation not exceeding four dollars per 
day during the time necessa'rily occupied in traveling from one dis¬ 
tillery to the other, together with actual and necessary traveling 
expenses. 

Under the provisions of this section storekeepers and storekeeper- 
gaugers will receive pay at that rate per diem which is to be received 
as compensation for a day at the distillery to which transferred, for 
such number of days only as shall be necessarily occupied in traveling 
by the shortest practicable route from the distillery from which trans¬ 
ferred to the distillery to which transferred, together with such 
actual and necessary traveling expenses as may be incurred. 

But in no case will a storekeeper or storekeeper-gauger be allowed 
a per diem compensation for more than one day in each consecutive 
twenty-four hours constituting a day. 

PAY AND EXPENSES OF GAUGERS, STOREKEEPER-GAUGERS, AND STORE¬ 
KEEPERS DETAILED BY THE COMMISSIONER. 

The legislative, executive, and judicial appropriation act approved 
April IT, 1900, provides as follows: 

That the Commissioner of Internal Revenue is authorized to detail 
gaugers, storekeeper-gaugers, and storekeepers appointed in one dis¬ 
trict for special or regular duty in other districts, and the accounts of 
gaugers, storekeeper-gaugers, and storekeepers so detailed shall be 
adjusted and paid in the district where they were appointed the same 
as if assigned to regular duty, without regard to the number of dis¬ 
tricts in which they may have been employed in any one month, the 
same as if all their services had been performed and expenses incurred 
in the district in which appointed, and the order of the Commissioner 
of Internal Revenue transferring gaugers, storekeeper-gaugers, or 
storekeepers to special work shall be accepted by the accounting offi¬ 
cers of the Treasury Department as full authority for proper expenses 
incurred by said gaugers, storekeeper-gaugers, or storekeepers while 
so assigned, 



Under the provisions of this act gaugers, storekeeper-gaugers, and 
storekeepers shall be paid their proper and necessary expenses in 
traveling under an order of the Commissioner detailing them for duty 
in districts other than that where appointed or such expenses incurred 
in returning to the district in which appointed. 

Accounts for pay and expenses shall be rendered to and paid by the 
collector of the district in which the officers were appointed regardless 
of where the services were rendered. 

DISTILLER’S BOOKS. 

Every distiller (sec. 3303, Rev. Stat.) is required to make true and 
exact entry daily, in books to be kept for that purpose, in the form 
and manner set forth in Forms Nos. 12,13, 25, and 28, heretofore pre¬ 
scribed, of all matters therein contained. .No materials of a kind for 
which a special column is provided in Form No. 13 should be entered 
under the head of other materials, and in Form No. 12 every kind of 
material purchased must be specified. 

Distillers who have given the required bond as such, and who sell 
only distilled spirits of their own production at the place of manu¬ 
facture in the original cask or package to which the tax-stamp is 
affixed, are exempt from paying special tax as wholesale liquor deal¬ 
ers, but are nevertheless required to keep wholesale dealer’s book, 
Form 52c, and to enter therein all spirits as received when the tax 
is paid thereon, and when sent out, to whom sent, etc. (See p. 200 
herein; also article 31, No. 23, as to record of spirits bottled in bond.) 

distiller’s monthly account. 

Under the provisions of section 3307, Revised Statutes, every dis¬ 
tiller is required on the first day of the month, or within five days 
thereafter, to render to the collector an account in duplicate of the 
materials used and of the spirits produced and warehoused during 
the preceding month. This return will be rendered on Form 14. 
The return is to be taken from the distiller’s books, and in making 
up said return he will enter the number of pounds of each kind of 
material used each day in the proper column. In the column of 
“ Bushels ” he will enter the number of bushels and fractions of 
bushels, found by dividing the number of pounds by 56, that being 
the number of pounds provided by law to represent a bushel. Should 
there be any fraction of a bushel in excess of even bushels, that frac¬ 
tion will be entered on Form 14 as so many fifty-sixths, and never in 
decimal fractions. Under the head of “ Total ” will be entered the 
total of all the columns; and in the column “ Spirits distilled and 
placed in warehouse ” he will enter the number of packages, the 
wine and proof gallons, giving the actual inspection, and not taxable 


56 


gallons. Each package need not be reported separately, but the 
number of packages entered each day may be reported in total. In 
filling up the affidavit the distiller will enter in the blank prepared 
for the purpose the dates of the first and last days included in the 
last preceding return. 

The return, when rendered by an individual, must be signed by 
the distiller in person, or in his name, by his authorized agent or 
attorney. In case of a firm, the signature must be made in the firm 
name by a member of the firm, or by some person duly authorized as 
above. 

In case of a corporation the signature will be made in the name and 
under the seal of the corporation by the authorized officer thereof, or 
by some person duly authorized by resolution or otherwise. 

Each return must be verified under oath or affirmation by the dis¬ 
tiller or the principal manager of the distillery; the oath of a clerk 
or other employee is not sufficient. 

Upon the receipt of the return the collector should satisfy himself, 
by examination of the books and premises, in person or by deputy, 
of the accuracy of the entries made, and will then transmit one copj^ 
to the Commissioner of Internal Revenue, with copies of the store¬ 
keeper’s returns, on Forms 88 and 88J. (See sec. 19, Part I, and 
sec. 17, Part IY, Regulations No. 30, as to record and return of 
spirits transferred to be denatured direct to denaturing warehouse 
or to tank in distillery warehouse.) 

COMMENCEMENT OF WORK. 

The opening paragraph of section 3310 of the Revised Statutes, as 
amended by section 7 of the act of May 28, 1880, provides that the 
first fermenting period of every distiller shall be taken to begin on 
the day the distiller’s bond is approved; and every distiller at the 
hour of 12 meridian on the last day of such first fermenting period, or 
at the same hour on any previous day of such fermenting period on 
which spirits are distilled, shall be deemed to have commenced and 
thereafter to be continuously engaged in the production of distilled 
spirits in his distillery, except in the intervals when he shall suspend 
work as hereinafter provided. 

This provision gives every distiller one full fermenting period in 
which to prepare his mash or beer for distillation, and the liability to 
the 80 per cent capacity will commence on the last day of such period 
or on any previous day on which spirits are distilled. 

SUSPENSION OF WORK. 

Any distiller desiring to suspend work (sec. 3310, Rev. Stat.) must 
give notice in writing to the collector, on Form 124, stating when he 


ot 


will suspend work. On the day mentioned the collector or one of his 
deputies shall, at the expense of the distiller, proceed to fasten 
securely the door of every furnace of every still or boiler in said dis¬ 
tillery, by securely locking the same, so that they can not be opened 
or any fire lighted in such furnace. Such notice and the report of 
the action taken thereon will be immediately transmitted to the Com¬ 
missioner of Internal Revenue. 

Xo distiller can carry on the business of a distiller after the time 
stated in such notice until he shall have given another notice in writ¬ 
ing, on Form 125, to the collector, stating the time when he will 
resume work, at which time the collector or one of his deputies must 
attend and remove the locks and other fastenings, which action must 
be immediately reported (when done by a deputy) to the collector, 
and by him to the Commissioner, and the report of the deputy col¬ 
lector and collector must distinctly state whether or not there was any 
mash, wort, or beer on hand at the time of such suspension. 

In order that the distiller may have the full benefit of the pro¬ 
visions of section 3310, Revised Statutes, and that the suspension may 
commence as soon as there is no beer on hand, he should give notice, 
at least twenty-four hours before the time he wishes to suspend, 
fixing in the notice the exact time when his tubs will be empty and 
all the beer on his distillery premises will be distilled, and all spirits 
in the process of manufacture will be run into the receiving cisterns 
in the cistern room. This course will give the collector ample time 
to notify his deputy to proceed to the distillery and lock the furnace 
doors as required by law. The provision for suspension under this 
section is where such suspension is at the desire of the distiller; and 
having mash, wort, or beer in the distillery during suspension is for¬ 
bidden under heavy penalties. But it is further provided that noth¬ 
ing in this section shall be held to apply to suspensions caused by 
unavoidable accident, and that the Commissioner of Internal Revenue 
shall prescribe regulations to govern in such cases of involuntary sus¬ 
pension. 

In case of an accident necessitating a suspension, the distiller 
should, if possible, distill all the beer in his tubs; but should the acci¬ 
dent be of such a nature as to render this impossible or impracticable, 
the distiller will immediately give notice to the deputy collector of the 
division in which the distillery is located, and said deputy collector 
will immediately proceed to the distillery and lock the furnace doors 
and so disconnect the machinery as to make distillation impossible, 
removing to the bonded warehouse some portion of the machinery 
necessary to distillation, and will at once notify the collector of his 
action, giving a full statement of the manner of dismantling the dis¬ 
tillery and the precise quantity of beer in each tub. Should the 
deputy collector fail to reach the distillery at the time stated in the 


58 


notice the storekeeper on duty at the distillery may lock the furnace 
doors, disconnect the machinery, and remove some portion of the same 
necessary to distillation to the bonded warehouse, and note the quan¬ 
tity of beer on hand. Upon the arrival of the deputy collector the 
storekeeper will deliver to him a certified statement showing when the 
furnace doors were locked and the machinery disconnected and the 
quantity of beer on hand, and will also surrender the keys of the fur¬ 
nace doors. The deputy collector will notify the collector at once on 
Form 124, giving a full statement of the manner of dismantling the 
distillery and the precise quantity of beer on hand. 

Such notice will be accompanied by the certified statement of the 
storekeeper. The suspension will then be allowed, provided the dis¬ 
tillery remains so dismantled for a period of twenty-four hours, 
exclusive of the day on which the doors are locked or distillery dis¬ 
mantled, and the day on which the fastenings are removed or the 
machinery connected. The storekeeper will also make a record of 
the number of gallons of beer in each tub, giving its serial number, 
at the time of suspension, and also the gallons of beer in the beer 
well, and will see that the same beer remains at the resumption of 
work, less natural evaporation; and the deputy collector, when he 
removes the locks and connects the machinery after such suspension, 
will note the quantity of beer on hand and report to the collector, 
who will immediately forward a copy of such report to the Commis¬ 
sioner. It will be observed that the law in providing for such in¬ 
voluntary suspension uses the word accident. This is not understood 
to include a failure of water or want of grain, or any circumstances 
which prevent the operation of the distillery, except an inevitable 
accident which can not be forseen by the distiller, and which renders 
distillation impossible. Upon receipt by the collector of the notice 
of his deputy that he has disconnected the distilling apparatus on 
account of accident, and the account of beer on hand, he will immedi¬ 
ately forward a copy of such notice and account to the Commissioner, 
stating fully and explicitly the nature of such accident, and upon 
receipt of notice of having* reconnected the distilling apparatus and 
of having allowed the distiller to resume operations, together with 
an account of beer on hand at the time of resuming, forwarded by 
the deputy collector to the collector, the collector will forward a copy 
of such notice and account to the Commissioner. 

It will be observed that in no case is the storekeeper authorized to 
remove locks and fastenings and connect the machinery upon a notice 
of resumption. 

WHEN DEDUCTIONS ALLOWED. 

No deduction is to be made for a suspension of work unless the pro¬ 
visions of section 3310, and of regulations thereunder, are strictly 


« 


59 


complied with. The distiller must give two notices in writing to the 
collector—first, of the time when he proposes to suspend work, and 
second, a like notice of the time he proposes to resume; at both of 
which times the collector or his deputy must be present to secure the 
furnaces or to remove the fastenings, as the case may be, and these 
two notices can not be combined in one. 

Attention is called to the provision of this section imposing penal¬ 
ties upon any distiller who, after the time fixed in his notice of inten¬ 
tion to suspend work, shall carry on the business of a distiller on said 
premises, or has mash, wort, or beer in his distillery or on premises 
connected therewith, contrary to the provisions of said section. 

COMMENCEMENT OF WORK AFTER SUSPENSION. 

Where a distiller resumes work after a suspension with no mash or 
beer on hand, he will be deemed to have commenced the distillation 
of spirits at 12 meridian on the last day of the first fermenting period 
or at the same hour on any previous day of such fermenting period on 
which spirits are distilled, and liability to 80 per cent of the capacity 
w T ill accordingly commence on the last day of such period or on any 
previous day on which spirits are distilled. 

In order that a proper allowance may be made, the distiller should 
note on Form 14 and the storekeeper on Form 88 the time when spirits 
were first distilled—that is, run from the worm of the beer still—on 
resumption with no beer on hand. 

When a distiller resumes with beer on hand, after an involuntary 
suspension, no allowance will be made in computing the 80 per cent. 

FERMENTING PERIOD. 

Section 3285 of the Revised Statutes, as amended by section 3 of 
the act of May 28, 1880, provides that every fermenting tub shall be 
emptied at or before the end of the fermenting period; no ferment¬ 
ing tub in a sweet-mash distillery shall be filled oftener than once in 
seventy-two hours, nor in a sour-mash distillery oftener than once in 
ninety-six hours, nor in a rum distillery oftener than once in one hun¬ 
dred and forty-four hours. 

This section as amended allows sweet-mash distilleries to ferment 
once and no more in seventy-two hours, sour-mash distilleries once 
and no more in ninety-six hours, and rum distilleries once and no 
more in one hundred and forty-four hours. 

The fermenting period of each tub will begin when the filling of 
the tub begins, or when the tub is actually full, at the option of the 
distiller; and the tub can not again be filled until the expiration of 
the period as established by law. 


60 


Each tub may be emptied at any time before the end of its ferment¬ 
ing period; but, unless sooner emptied, it must be emptied at the end 
of the period. 

When a tub is emptied before the end of the period fixed by law, it 
must stand empty and open until the end of the period ; after which 
it may, at the option of the distiller, again be filled, or may continue 
to stand empty and open, or may, upon notice from the distiller, be 
closed and sealed. 

But no tub, after having been filled, can be closed and sealed for 
the purpose of limiting the producing capacity of the distillery until 
the expiration of the full period fixed by law. 

CHANGES IN CAPACITV. 

Any distiller (sec. 3311, Rev. Stat.) desiring to reduce the produc¬ 
ing capacity of his distillery must give notice of such intention in 
writing to the collector (Form 126), stating the quantity of spirits 
which he desires thereafter to manufacture every twenty-four hours; 
and thereupon the collector is required, at the expense of the distiller, 
to reduce and limit the producing capacity of the distillery to the 
quantity stated in his notice, by placing upon a sufficient number of 
fermenting tubs close-fitting covers, securely fastened by nails, seals, 
and otherwise, so as to prevent the use of such tubs without remov¬ 
ing said covers or breaking said seals; and whenever he shall be of 
opinion that other precautions are necessary, he will report the case 
to the Commissioner of Internal Revenue for instructions. 

Where a distiller desires to reduce capacity without reducing the 
number of tubs, it may be done by cutting down the tubs to the size 
required. The cutting out of one or more staves is not sufficient, 
but the whole tub must be cut off, in which case a new survey must 
be made, as hereinbefore provided. It is the custom in most distill¬ 
eries to set the tubs in a slanting position that the beer may run out 
more readily, and that the tubs may be more easily cleaned. In such 
a case the distiller may cut the tops of his tubs to a water level, and 
as this would be a reduction of capacity a new survey may be made, 
and the average or mean depth may be taken. In case tubs are not 
so cut to a water level, no temporary or other additions will be 
allowed on the tops of the fermenting tubs to prevent overflow of beer. 

When a distiller desires to reduce the producing capacity of his 
distillery by closing tubs then open, or to increase it by'opening tubs 
then closed, he must give notice to the collector on Form 126, stating 
the quantity of spirits he desires thereafter to produce every twenty- 
four hours. 

Tubs closed to reduce capacity must be covered with close-fitting 
covers, which must be secured by nails, seals, and otherwise, and in 


61 


such manner as to prevent the use of such tubs without breaking the 
seals and removing the covers. 

The opening and closing of tubs must be done by or in presence of 
the collector or one of his deputies, who only are authorized to attach 
the fastenings and seals, or to remove the same from the covers 
placed upon the tubs not in use. 

hen fermenting tubs are closed in a grain or molasses distillery, 
either on one day or on certain successive days in one fermenting 
period, pursuant to a notice from the distiller of his intention to 
reduce the producing capacity of his distillery, and thereafter to 
manufacture daily a certain less quantity of spirits, the reduction in 
capacity resulting from closing the tub or tubs named in the distill¬ 
er s notice will be deemed to occur, and will be allowed to the full 
extent of the total daily capacity of the tub or tubs closed, at the end 
of the same number of hours after the closing of the first tub which 
is fixed by the survey as the fermenting period for the distillery— 
that is, seventy-two hours, ninety-six hours, or one hundred and 
forty-four hours, as the case may be. 

In like manner, when fermenting tubs are opened, either on one 
day or on certain successive days in one fermenting period, pursuant 
to notice by the distiller of his intention to increase the producing 
capacity of his distillery, and thereafter to manufacture daily a cer¬ 
tain larger quantity of spirits, the increase in capacity resulting from 
opening such tub or tubs will be deemed to occur, and will be allowed 
to the full extent of the total daily capacity of the tub or tubs opened, 
at the end of the same number of hours after the opening of the first 
tub which is fixed by the survey as a fermenting period for the dis¬ 
tillery—that is, seventy-two hours, ninety-six hours, or one hundred 
and forty-four hours, as the case may be. 

Notices of change in capacity will be given on Form 126, revised, 
and will state the day or successive days, not exceeding one ferment¬ 
ing period in number, upon which tubs are desired to be closed, or to 
be opened, as the case may be, the serial numbers of the tubs to be 
closed, or to be opened, each day, the working capacity of each tub 
in gallons, and its daily capacity in bushels, the daily spirit-produc¬ 
ing capacity of the distillery after the change shall be completed, and 
such other information as is called for by the form. 

When a change is to be made by closing tubs, or by opening them, 
as the case may be, on successive days, the notice should be given 
upon one Form 126. 

When notices of changes to be made on successive days are given 
at different dates, or when tubs are opened or closed on days not 
immediately successive, only the change in capacity resulting from 
each opening or closing, as the case may be, will be allowed at the 
end of a period equal to the fermenting period fixed by the survey of 
the distillery, after such opening or closing. 


62 


"When tubs are opened and other tubs are closed on the same day, 
their difference, if any, in daily capacity only, will be allowed. 

It will be observed that the closing of the tub does not affect the 
capacity of the distillery at the time of closing; but that, on the con¬ 
trary, its capacity is withdrawn from the total capacity of the dis¬ 
tillery not later than at the end of one fermenting period from the 
closing of the tub, or the closing of the first of a series of tubs closed 
on each successive days, when, because of such closing, the product 
of the distillery will be reduced. 

So, also, the opening of tubs for the purpose of increasing capacity 
will not affect the capacity of the distillery until one fermenting 
period has elapsed from the opening of the tub, or from the opening 
of the first of a series opened on each of successive days, and until 
(if the tubs were filled) the spirit product of the distillery is affected 
thereby. 

When the distiller is not using the full fermenting period allowed 
by law a change in capacity will take effect at the end of the ferment¬ 
ing period actually used or on the day when the spirit product of the 
distillery is or might be affected by the change. 

The certificates of the collector and deputy collector (upon Form 
126) will show that the tubs have been closed or opened in the man¬ 
ner required by law T and regulations; the serial numbers of the tubs 
open, and the serial numbers of the tubs closed, after the change, and 
the daily capacity of the distillery resulting from the change, and 
the date when the same takes effect. 

These notices are to be given in duplicate, and deputy collectors are 
hereby required to deliver or to forward them to the collector on the 
day that the fermenting tubs are closed or opened, in accordance with 
the notice; and collectors are required, on the day of their receipt, to 
examine the same, append their certificates, and cause the proper 
entries to be made in their record of registered distilleries (No. 45) 
and forward one copy to the Commissioner of Internal Revenue. 
The retention of these notices by deputies or their accumulation in the 
office of the collector must not be permitted. 

CHANGE IN STRENGTH OF BEER. 

In case a distiller wishes to change his capacity by varying the 
strength of beer, and wishes to use a beer thicker than that authorized 
by the existing survey, a new survey should be made, based upon 
the strength of beer named in the notice of the distiller. But in case 
the distiller wishes to use a beer thinner than that authorized by the 
existing survey, no new survey should be made or change of capacity 
allowed, unless the strength of beer desired to be used by the distiller 
is within the minimum prescribed in section 3264, Revised Statutes. 


63 


ENLARGING CAPACITY. 

In case a distiller desires to increase capacity after his plans are 
furnished, the survey made, and his bond is approved, he must give 
notice on Form 27a, under section 3259, Revised Statutes, and if such 
change necessitates any alteration in his distillery, as the introduc¬ 
tion of additional mash or fermenting tubs, a supplemental plan 
must be furnished showing the alterations. If such alterations are 
confined to one floor, a supplemental plan of that floor properly cer¬ 
tified will be received. In case of increase of capacity over that 
fixed by the survey upon which the penal sum of the bond was com¬ 
puted, a new notice and survey will be required, and a new bond 
will also be required, provided the penal sum of the existing bond is 
insufficient. 

SPIRITS TO BE DEPOSITED IN RECEIVING CISTERNS IN CUSTODY OF GAUGER. 

All spirits the manufacture of which is completed each day must be 
conveyed into the receiving cisterns by or before midnight of the 
same day. The cisterns and the room in which they are contained 
must be in charge of and under the lock of the internal-revenue 
gauger designated for that duty. The collector will designate the 
gauger to perform this duty. In no case, however, will the store¬ 
keeper or storekeeper-gauger assigned and acting in the capacity of 
storekeeper be allQwed to hold the key or have charge of the cistern 
room. The cistern room must not be opened or suffered to remain 
open except when the designated gauger is present, nor will the Gov¬ 
ernment key at any time be suffered to pass into the possession of the 
distiller or any person in his employ, but will be retained at all times 
in the possession of the designated gauger. 

REDISTILLATION ON DISTILLERY PREMISES. 

Section 3244, Revised Statutes, declares that every person shall be 
regarded as engaged in the business of rectifying who rectifies, puri¬ 
fies, or refines distilled spirits or wines, by any process other than by 
original and continuous distillation from mash, wort, or wash, 
through continuous closed vessels and pipes, until the manufacture 
thereof is complete. Therefore a distiller may carry his product 
through as many processes of distillation as he pleases, provided the 
process is continuous , commencing with the distillation of the mash, 
wort, or wash, the 'product of distillation of the mash being carried 
through continuous closed vessels and pipes until the final product is 
deposited in the receiving cistern . 

By the same section distillers are allowed to purify or refine dis¬ 
tilled spirits in the course of original and continuous distillation, 
through any material which will not remain incorporated with such 


64 


spirits, when the manufacture thereof is complete. The only proc¬ 
esses of refining or purifying known to this office, which can be 
allowed under the law, are redistillation, leaching, or filtering through 
charcoal, flannel, or other similar purifiers. The apparatus to be used 
for purifying or refining in a distillery and the room or building con¬ 
taining the same must be arranged and constructed as required in 
instructions under the head “ Redistilling or rectifying room,” p. 13. 

On the completion of the process of purifying or refining, the sub¬ 
stance through which the spirits have passed must be disposed of in 
some manner, and it is held that such substance can not be removed 
from the distillery premises without a violation of section 3296, 
Revised Statutes, which forbids the removal of distilled spirits to any 
place other than a distillery warehouse before the tax thereon has 
been paid. It is a well-known fact that the substance through which 
the spirits have passed will retain a considerable quantity of spirits, 
even after the usual process for recovering such spirits, and distillers 
are therefore forbidden to remove from the distillery premises any 
charcoal, or other substance which has been used in the leaching tubs 
containing any spirits, but such substance may be consumed on the 
distillery premises as fuel, and will be entered upon the proper record 
in the same manner as other fuel. 

REMOVAL OF FUSEL OIL. 

The removal of fusel oil from distilleries, in quantities of not less 
than 200 gallons at one time, will be permitted upon compliance with 
the following requirements: 

The oil must first be thoroughly washed and purified and with¬ 
drawn from the tank or tub into packages in the presence of the store¬ 
keeper, who will note upon his record, No. 17, the quantity of oil so 
withdrawn from the tub that day. 

The distiller shall then, before removal of the oil from the dis¬ 
tillery premises, give notice to the collector of the district, stating the 
time at which he desires to make such removal and the quantity 
to be removed. The collector, or a deputy specially detailed for that 
purpose, shall attend at the time specified in the notice, and together 
with the storekeeper on duty at the distillery make test of the char¬ 
acter of the oil by a tube to be provided by the distiller. 

The oil, after having been washed or purified and drawn into pack¬ 
ages, shall be thoroughly plunged or agitated, and then specimens 
drawn from each package into a test tube, to be provided by the dis¬ 
tiller, for examination. 

The test tube is of glass, bulb shaped and closed at one end, having 
a graduated scale marked upon the glass in degrees from 0 near the 


65 


top to 100 near the swell of the bulb. The bulb will contain three 
times as much liquid as that portion of the tube which is graduated 
from 0 to 100. 

The tube having been filled with water up to the mark 100, oil shall 
be added until the tube is filled to the mark 0. The oil and water 
shall then be thoroughly mingled by violently agitating the contents 
of the tube. If, after sufficient time has been allowed for the oil to 
fully separate from the water and resume its position at the top of the 
tube, the scale shall show that not more than 10° or 10 per cent of 
the oil has disappeared or been dissolved in the water, the oil shall be 
passed as merchantable—that is to say, containing so minute a quan¬ 
tity of alcoholic spirits as not to be profitably recovered by distilla¬ 
tion, but if over 10° of oil disappears the oil will not be considered as 
sufficiently purified, and can not be removed in that condition. 

The cask containing oil fit for removal shall be marked by the dis¬ 
tiller with his name and the number of the district, as in the case of 
a package of distilled spirits, and in addition with the name of its 
contents, in distinct and easily legible letters, and the date of removal. 

When the examination is made by a deputy collector, he and the 
storekeeper will immediately make report to the collector, stating the 
date of their attendance, the quantity inspected, the percentage of loss 
upon test with water, and the quantity fit for removal. 

The storekeeper will note upon Form 88, for the month, the quan¬ 
tity of oil removed during the month and the percentage of loss shown 
upon test. 

Collectors will bear in mind that fusel oil is not obtained in any 
considerable quantities except in distilleries having an alcohol column 
or other apparatus for redistillation of high-proof spirits, and they 
will carefully note applications for removal of this oil in connection 
with the quantities of grain which have been used and of alcohol pro¬ 
duced by the distiller. 

The water used for washing or purifying the oil in the tanks or tubs 
may be run into the low-wine tub or into the sewer, or may be other¬ 
wise destroyed on the premises,,as the distiller may prefer. 

REMOVING DISTILLED WATER FR03I DISTILLERY PREMISES. 

Distilled water must, under no circumstances, be drawn off in the 
cistern room, nor removed through the warehouse, and all such water 
when drawn off must be inspected by the storekeeper, who will also 
supervise its removal, and make an entry in some portion of Record 
No. 17, not otherwise used, of the date of removal, the number of 
barrels removed, and of the names of the persons to whom sent, 
56815—OS-5 


66 


MASH, WORT, OR WASH. 

No mash, wort, or wash fit for distillation or for the production of 
spirits or alcohol can lawfully be made or fermented in any building 
or on any premises other than a distillery duly authorized according 
to law, except for the manufacture of fermented liquors, or for the 
manufacture of vinegar, as provided by section 3282, Revised Statutes, 
as amended by section 5 of the act of March 1, 1879, and no mash, 
wort, or wash so made and fermented can be sold or removed from 
any distillery before being distilled; and no person other than an 
authorized distiller can, by distillation or by any other process, sepa¬ 
rate the alcoholic spirits from any fermented mash, wort, or wash, 
and no person can use spirits or alcohol in manufacturing vinegar or 
any other article or in any process of manufacture whatever unless the 
spirits or alcohol so used shall have been produced in an authorized 
distillery and the tax thereon paid. 

NO OTHER BUSINESS TO BE DONE IN A DISTILLERY. 

The use of any still, boiler, or other vessel for the purpose of dis¬ 
tilling is forbidden (sec. 3266, Rev. Stat.) in any dwelling house, shed, 
yard, or inclosure connected therewith, or on board of any vessel or 
boat, or in any building or on any premises where beer, lager beer, ale, 1 
porter, or other fermented liquors, vinegar, or ether are manufactured 
or produced, or sugars or sirups are refined, or liquors of any descrip¬ 
tion are retailed, or where any other business is carried on , or within 
GOO feet in a direct line of any premises authorized to be used for rec¬ 
tifying. The only exceptions are the manufacture of saleratus and 
the grinding of meal or flour from grain to be used only for distillation 
on the premises. Where there are gristmills adjoining a distillery 
they must be so entirely separated by solid walls and otherwise as to be 
in fact independent premises, although both establishments may be 
driven by the same power; in which case an opening will be permitted 
in the separating wall sufficient for the passage of a steam pipe or 
shaft, or both. They must be so arranged that the description of the 
distillery premises on Form No. 27 a will not include the mill. 

officer's right of entry. 

Any revenue officer or agent (sec. 3276, Rev. Stat., ns amended) 
may at all times, as well by night as by day, enter any distillery or 
building or place used for the business of distilling, or used in con¬ 
nection therewith for storage or other purposes, and, if not admitted 
upon demand, having declared his name and office, he may break open 
any doors or windows or break through any of the walls of such 
premises necessary to be broken to enable him to enter. 


67 


Aliy officer or agent, (sec. 3286, Rev. Stat., as amended) may require 
the water in any worm tub to be drawn off and the tub and worm 
cleansed at any time when the still is not at work, and the water must 
be kept out of the worm tub for two hours, or until the officer has 
finished his examination. 

Section 3278, Revised Statutes, provides that it shall be lawful for 
any internal-revenue officer and any persons acting in his aid to break 
up the ground on any part of a distillery or premises of a distiller or 
rectifier, or any ground adjoining or near any such distillery or prem¬ 
ises, or any wall or partition thereof or belonging thereto, or other 
place, to search for any pipe, cock, private conveyance, or utensil, 
and upon finding any pipe or conveyance leading from or to the dis¬ 
tillery premises to break up any ground, house, wall, or other place 
through or into which such pipe or conveyance leads, and to break or 
cut away such pipe. 

MASHING, DISTILLING, AND REMOVAL OF SPIRITS PROHIBITED IN THE 
ABSENCE OF STOREKEEPER. 

The special attention of officers and distillers is directed to the pen¬ 
alties imposed in section 3284, Revised Statutes, for mashing, distill¬ 
ing, or removing spirits in the absence of the storekeeper, or person 
designated to act as storekeeper. Any mashing or distilling at any 
time when the storekeeper is not present is prohibited. It is the duty 
of all officers, and especially of collectors, to see that this law is 
obeyed and its violation noted and properly punished. 

SUNDAYS. 

No malt, corn, grain, or other material (sec. 3283, Rev. Stat.) can 
lawfully be mashed, nor any wash, wort, or beer brewed or made, nor 
any still used by a distiller at any time between the hours of 11 in the 
afternoon of Saturday and 1 in the forenoon of the next succeeding 
Monday, under penalty of $1,000 for each offense. 

ASSISTANCE TO BE FURNISHED. 

Section 3277, Revised Statutes, provides that on demand of any 
internal-revenue officer or agent every distiller or rectifier shall fur¬ 
nish convenient ladders to enable the officer or agent to examine any 
vessel or utensil in his distillery or premises, and shall furnish all 
assistance, lights, tools, or other things necessary for inspecting the 
premises, and shall open all doors, boxes, packages, and all casks, 
barrels, and other vessels not under the control of the internal- 
revenue officer in charge thereof. 


68 


NO DISTILLERY ALLOWED TO RUN WITHOUT COMPLIANCE WITH LAW AND 

REGULATIONS. 

Under no circumstances must a distillery be allowed to run until 
all the requirements of the law and regulations have been complied 
with; and any distillery found running without such compliance 
must be immediately stopped. 

Collectors should instruct their deputies to visit the distilleries in 
their district as often as possible, and at other than stated intervals; 
and at such visits deputy collectors should carefully examine the dis¬ 
tiller’s yeasting book and the record of the storekeeper in order to 
determine whether such books are correctly kept; whether the fer¬ 
menting tubs have each been emptied at or before the end of the fer¬ 
menting period, and if emptied before the end of the period if they 
have remained empty and open until the end of the period; whether 
the mash or beer has been made of the consistency required by the 
survey; and whether the tubs have been filled above the dry inches 
allowed for fermentation. They should also see that the distillation 
of each day has been run into its appropriate cistern, and that the 
gauger inspects each package of spirits separately. 

REVENUE OFFICERS NOT TO BE INTERESTED IN DISTILLING, ETC. 

No internal-revenue officer can be interested, directly or indirectly, 
in the manufacture of tobacco, snuff, or cigars, or in the production, 
rectification, or redistillation of distilled spirits, under the penalties 
imposed by section 3168, Revised Statutes. 

CONCERNING LOCKS AND SEALS. 

Under the provisions of sections 3267, 3270, and 3310, Revised Stat¬ 
utes, the Commissioner of Internal Revenue is authorized to procure 
all locks and seals required to be used at distilleries and distillery 
warehouses at the expense of the United States, and to require to be 
put on any of the stills, tubs, cisterns, pipes, or other vessels such 
fastenings, locks, or seals as he may deem necessary. 

In the exercise of the authority thus conferred, collectors are 
hereby directed to occasionally examine the distilleries and distillery 
warehouses in their districts, and determine whether or not they are 
fully supplied with locks, and if the same are in good condition. 

In making this examination they will bear in mind that locks are 
required upon all openings in the distilling apparatus by which 
access may be had to the spirits wdiile in transit from the still to the 
receiving cisterns; upon all caps or coverings of manholes or other 
openings of copper stills or doublers; upon all openings or hoppers 
through which the meal is conveyed to the mash tubs; upon the fau¬ 
cets and all openings of the receiving cisterns; upon the door of the 


69 


cistern room; upon the door of the distillery warehouse; upon the 
door of the meal or grain room; upon the valve in the pipe which con¬ 
veys steam to the still, which must be closed and locked when dis¬ 
tilling operations cease for the day, or whenever there is a temporary 
or permanent discontinuance of distilling. 

The door of the furnace of every still or boiler used in any distillery 
is required by section 3269, Revised Statutes, to be so constructed that 
it may be securely fastened and locked; and under the provisions of 
section 3310, Revised Statutes, it is required that locks shall be placed 
Upon the furnace doors while the distillery is under suspension, which 
doors shall then be locked with locks used elsewhere while the distill¬ 
ery is in operation, to be taken from such points as may be designated 
by the collector, and delivered to the deputy collector by the store¬ 
keeper for that purpose. 

All openings found in the distilling apparatus by which access may 
be had to the spirits while in transit which are not absolutely neces¬ 
sary, and which can be permanently closed without injury to the dis¬ 
tiller, will be closed in such manner and without the use of locks. 
Where the meal hoppers, or openings through which the meal is con¬ 
veyed to the mash tubs, are so situated that by aid of a bar or chain 
they may be closed so as to be under the control of the storekeeper 
with one lock, such bar or chain will be procured and used instead of 
using a lock to each hopper or opening. 

All openings in cistern rooms and in distillery warehouses, except 
one door for each, must be securely barred upon the inside. 

The only lock to the warehouse door must be the Government lock, 
the key of which must at all times be in charge of the storekeeper. 

Collectors are instructed to forward a requisition for the locks 
required for use at a distillery about to commence operations at the 
same time the application for a warehouse is forwarded, and in mak¬ 
ing up the same care will be taken to state definitely—(1) the name 
of the distiller or distillery; (2) the whole number of locks required; 
(3) the precise place or part of the apparatus upon which each lock 
is to be used; and such requisition will be filled as soon as the ware¬ 
house is approved by this office, provided the foregoing requirements 
are fully complied with. Any locks heretofore prescribed and in 
good condition may be used. 

In case any Government lock becomes defective or broken it should 
be returned to this office by mail, and at the same time a letter of 
transmittal should be forwarded informing this office that such lock 
has been returned, giving the kind and number of the same, and also 
stating the manner in which it became defective or broken, and upon 
its receipt a new one will be sent to replace it if required. 

Collectors will be supplied with seal locks and seals for use on the 
warehouse and cistern-room door only. 


70 


The Slaight seal lock having been adopted for use in the Internal- 
Revenue Service is issued for use on the doors of cistern rooms or 
warehouses. Seals will be furnished with the Slaight lock, in sheets 
of 54 seals each, upon application by letter, which seals shall be used 
in consecutive order. Where a seal lock is required by regulation 
Slaight locks will be employed. 

The Slaight lock is constructed with a clasp attached thereto, with 
a blind hinge at the bottom opening downward. 

This clasp when open discloses an indentation in the face of the 
lock surrounding the keyhole and made to receive the seal. The lock 
being unlocked and the hasp open, the seal will be placed in the 
indentation made for its reception and the seal clasp shut, and the 
hasp pushed downward into the lock, locking the lock and the seal 
clasp at one and the same motion and time. 

The seals being numbered consecutively, care will be taken to use 
them in the order in which they are numbered, using the lowest 
number first. 

In cases where locks are required to be opened several times a day, 
the seal will not be inserted until the lock is closed for the night, 
unless the officer having the lock in charge should have occasion to 
absent himself from the distillery premises during the day. 

For securing portions of the distillery premises other than the 
doors of cistern rooms and distillery warehouses suitable plain locks 
will be furnished. 

All Government locks when not required for use at distilleries will 
be retained in the possession of the collector of the district or one of 
his deputies. 

Gaugers, storekeepers, and storekeeper-gaugers are strictly pro¬ 
hibited from intrusting locks, keys, or seals in their charge to any 
person other than an internal-revenue officer entitled to receive the 
same, and under no circumstances will they permit locks to remain 
open, whether hanging by the shackle or otherwise. 

Violation of these instructions will be deemed sufficient cause for 
removal from office. 

Receipts will be taken by collectors from the storekeepers, gaugers, 
and storekeeper-gaugers for all locks and seals placed in their charge. 
These officers will also be required to render to collectors a monthly 
report of seals on Form 145 and of locks on Form 289. 

Collectors will be held accountable for the Government locks sup¬ 
plied upon their respective requisitions, and for those received 
from their predecessors in office. Outgoing collectors will take re¬ 
ceipts from their successors in office for the Government locks then 
in the district. (For instructions relative to keeping account of locks 
issued by collectors, see under heading “ Record 99 ” on page 149 
herein; also see instructions regarding return on Form 152 herein.) 


71 


Collectors are instructed, when the supply of paper seals has be¬ 
come nearly exhausted, to make requisition for a number of such seals 
sufficient to meet the wants of the district for six months. 

Section 3268, Revised Statutes, provides that— 

Every person who destroys, breaks, injures, or tampers with any 
lock or seal which may be placed on any cistern room or building by 
the duly authorized officers of the revenue, or opens said lock or seal, 
or the door to said cistern room or building, or in any manner gains 
access to the contents therein, in the absence of the proper officer, 
shall be fined not less than five hundred dollars nor more than five 
thousand dollars, and imprisoned not less than one year nor more 
than three years. 

Section 3311, Revised Statutes, provides that every person who 
breaks, injures, or in any manner tampers with any lock, seal, or 
other fastening applied to any furnace, still, or fermenting tub, or 
other vessel, in pursuance of the provisions of law, or who opens 
or attempts to open any door, tub, or other vessel which is locked 
or sealed, or otherwise closed or fastened as herein provided, or 
who uses any furnace, still, or fermenting tub, or other vessel 
which is so locked, sealed, or fastened, shall be deemed guilty of 
a felony, and shall be fined not less than $1,000 nor more than $5,000, 
and imprisoned for not less than one year nor more than three years. 

REGULATIONS GOVERNING THE DEPOSIT IN, AND THE WITH¬ 
DRAWAL OF DISTILLED SPIRITS FROM, DISTILLERY WARE¬ 
HOUSES. 

ENTRIES FOR DEPOSIT AND WAREHOUSING BONDS. 

Section 3293 of the Revised Statutes, as amended by section 4 of 
the act of May 28, 1880, provides: 

The distiller [or owner] of all spirits removed as aforesaid to the 
distillery warehouse shall, on the first day of each month or within 
five days thereafter, enter the same for deposit in such warehouse, 
under such regulations as the Commissioner of Internal Revenue may 
prescribe. Said entry shall be in triplicate, and shall contain the 
name of the person making the entry, the designation of the ware¬ 
house in which the deposit is made, and the date thereof, and shall 
be in the following form: 

“Entry for deposit in distillery warehouse. 

“ Entry of distilled spirits deposited by --, in distillery 

warehouse-, in the-district, State of-- during^ the 

month ending on the-day of-, anno Domini .’ 

And the entry shall specify the kind of spirits, the whole number 
of packages, the marks and serial numbers thereon, the number of 









72 


gauge or wine gallons, proof gallons, and taxable gallons, and the 
amount of tax on the spirits contained in them; all of which shall be 
verified by the oath of the distiller [or owner] of the same attached 
to the entry. The said distiller [or owner] shall at the time of mak¬ 
ing said entry give his bond in duplicate, with one or more sureties, 
satisfactory to the collector of the district, conditioned that the prin¬ 
cipal named in said bond shall pay the tax on the spirits as specified in 
the entry, or cause the same to be paid, before removal from said dis¬ 
tillery warehouse, and within [three] 0 years from the date of said 
entry; and the penal sum of such bond shall not be less than the 
amount of the tax on such distilled spirits. One of said entries shall 
be retained in the office of the collector of the district, one sent to the 
storekeeper in charge of the warehouse, to be retained and filed in the 
warehouse, and one sent with duplicate of the bond to the Commis¬ 
sioner of Internal Revenue, to be filed in his office. 

A new bond shall be required in case of the death, insolvency, or 
removal of either of the sureties, and may be required in any other 
contingency affecting its validity or impairing its efficiency, at the 
discretion of the Commissioner of Internal Revenue. And in case the 
distiller [or owner] fails or refuses to give the bond hereinbefore re¬ 
quired, or to renew the same, or neglects to immediately withdraw the 
spirits and pay the tax thereon, or if he neglects to withdraw any 
bonded spirits and pay the tax thereon before the expiration of the 
time limited in the bond, the collector shall proceed to collect the tax 
by distraint, issuing his warrant of distraint for the amount of the 
tax found to be due, as ascertained by him from the report of the 
gauger if no bond was given, or from the terms of the bond if a bond 
was given. But this provision shall not exclude any other remedy or 
proceeding provided by law. 

If it shall appear at any time that there has been a loss of distilled 
spirits from any cask or other package hereafter deposited in a dis¬ 
tillery warehouse, other than the loss provided for in section thirty- 
two hundred and twenty-one of the Revised Statutes of the United 
States, as amended, which, in the opinion of the Commissioner of 
Internal Revenue, is excessive, he may instruct the collector of the 
district in which the loss has occurred to require the withdrawal from 
warehouse of such distilled spirits, and to collect the tax accrued upon 
the original quantity of distilled spirits entered into the warehouse 
in such cask or package, notwithstanding that the time specified in 
any bond given for withdrawal of the spirits entered into warehouse 
in such cask or package has not expired. If the said tax is not paid 
on demand, the collector shall report the amount due upon his next 
monthly list, and it shall be assessed and collected as other taxes are 
assessed and collected. 

That the tax on all distilled spirits hereafter entered for deposit in 
distillery warehouses shall be due and payable before and at the time 
the same are withdrawn therefrom and within [three] 0 years from 
the date of the entry for deposit therein; and warehousing bonds here¬ 
after taken under the provisions of section thirty-two hundred and 

Note.— Portions in brackets [ ] not applicable to spirits deposited subsequent 
to the act of August 28, 1894. 

0 Extended to eight years. See section 49 of said act of August 28, 1894. 




73 


ninety-three of the Revised Statutes of the United States shall be 
conditioned for the payment of the tax on the spirits as specified 
in the entry before removal from the distillery warehouse, and within 
[three]® years from the date of said bonds. 

Section 49 of the act of August 28, 1894, provides: 

That warehousing bonds and transportation and warehousing bonds, 
conditioned for the payment of the taxes on all distilled spirits entered 
for deposit into distillery or special bonded warehouses on and after 
the passage of this act, shall be given by the distiller of said spirits as 
required by existing latvs, conditioned, however, for payment of taxes 
at the rate imposed by this act and before removal from warehouse 
and within eight years; as to fruit brandy, from the date of the orig¬ 
inal gauge, and as to all other spirits from the date of the original 
entry for deposit, and all warehousing bonds or transportation and 
warehousing bonds conditioned for the payment of the taxes on dis¬ 
tilled spirits entered for deposit into distillery or special bonded ware¬ 
houses prior to that date shall continue in full force and effect for the 
time named in said bonds, except where new or additional bonds are 
required under existing law. * * * And the provisions of section 

four of the act of May twenty-eighth, eighteen hundred and eighty 
(twenty-first Statutes, one hundred and forty-five), so far as appli¬ 
cable, are hereby extended to bonds given under the provisions of this 
section: Provided , That the distiller may, at his option, and under 
such regulations as the Commissioner of Internal Revenue, with the 
approval of the Secretary of the Treasury, shall prescribe, execute an 
annual bond * for the spirits so deposited in lieu of the bonds herein 
provided. 

The amendments effected by section 49, above quoted, so far as re¬ 
lates to spirits deposited in dist illery wa rehouses, consist— 

(1) In requiring the warehousing bond to be given in each case by 
the “ distiller,” and not by the “ distiller or owner” as heretofore 
required; 

(2) In requiring the bond to be conditioned for the payment of 
taxes at the rate imposed by the act (sec. 48), and within eight years 
from the date of original entry for deposit ; and 

(3) In providing for an annual warehousing bond (when the dis¬ 
tiller so elect), in lieu of the monthly warehousing bond therein pre¬ 
scribed. 

Entries for deposit made under the provisions of law above quoted 
will be prepared in triplicate on internal-revenue Form 240, and in 
accordance with the instructions printed thereon. Those to be for- 
Avarded to the Commissioner of Internal Revenue should be forwarded 
with the bonded distilled spirits account, Form 94 a, part 1. 

« Eight years. See sec. 49, following. 

& For distiller’s annual bond for brandy deposited in special bonded warehouse, 
see Regulations, series 7, No. 5, revised. For like bond for spirits deposited in 
general bonded warehouses established under sections 51 to 59, inclusive, of the 
act of August 28, 1894, see Regulations, series 7, No. 20, revised. 




74 


The monthly warehousing bonds required under the same statute 
(sec. 3293, Rev. Stat., as amended) will be in duplicate on internal- 
revenue Form 80, revised, and in accordance with instructions printed 
thereon, and the original bonds will likewise be forwarded to the 
Commissioner with the account for the month in vdiich the spirits 
covered by the bonds w^ere produced. Collectors should exercise 
special care in the matter of accepting sureties to warehousing 
bonds. [Stockholders of a corporation engaged in distilling can not 
be accepted as sureties on distillers’ bonds given by the corporation. 
(16 Op. Atty. Gen., 10; 24 Int. Rev. Rec., 153.)] 

As announced in T. D. 1370, the acknowledgment of the execution 
of bonds before an attesting officer (including the aclmowdedgment 
and justification of surety companies on Form 400) need not here¬ 
after be required; nor will the attestation by witnesses of signatures 
of officers signing bonds on behalf of corporations, whether principal 
or surety, be required,, the corporate seal of each such corporation, 
affixed to the bond, being itself sufficient evidence as to the officer 
signing. As required by Department Circular 43 of June 22, 1908, 
all bonds executed by incorporated companies, either as principal or 
surety, should be executed under the company’s corporate seal, 
whether executed by a regularly elected officer, or by a duly author¬ 
ized agent or attorney, and collectors will see that all such bonds 
are so executed before approving the same. 

For instructions relative to the acceptance of incorporated surety 
companies as sole surety on distillers’ bonds, see page 25. Suit should 
be first brought on warehousing bonds to recover tax on spirits before 
resort is had on the distiller’s general bond. Form 30. (Treas. Dec. 
(1899), 20920.) 

distiller’s annual warehousing bonds. 

Where an annual bond for spirits to be deposited in a distillery 
warehouse is given in lieu of the monthly warehousing bond, such 
bond w T ill be executed in duplicate on revised Form 359, and in ac¬ 
cordance with instructions printed thereon, in a penal sum of not less 
than the amount of tax on the estimated quantity of spirits to be 
deposited and to remain in the designated warehouse during the 
period for which the bond is given. 

The bond so given will cover only spirits so deposited and wfill 
continue in force until all such spirits have been lawfully removed 
from the warehouse. 

In order that all bonds of this class may be given for a like annual 
period, such bonds hereafter will be given for a period of one year 
from the first clay of July , 190 ; and collectors w ill see that all such 
bonds are hereafter so executed. They will also see that such bonds 
are given in a sufficient amount, and they will decline to accept 


75 


such bonds, if in their judgment, the same are insufficient. Where, 
however, an additional bond is found to be necessary before the 
expiration of the annual period, such additional bond will be given 
for the same annual period as that covered by the original bond. 

At the expiration of the year during which spirits may be so depos¬ 
ited a new and separate bond, covering spirits to be deposited during 
the ensuing year, should be filed by the distiller, unless the spirits 
thereafter deposited each month are-covered by a monthly warehous¬ 
ing bond, Form 80. A new annual bond will, however, be required 
in case of death, removal, or insolvency of either of the sureties to 
the outstanding bond, or in any other contingency, in the discretion 
of the collector or the Commissioner of Internal Revenue. Should 
the distiller neglect or refuse to file the required bond, the collector 
will at once proceed to -collect all outstanding taxes due or accruing 
on the spirits not so rebonded, as provided in section 49 of the act of 
August 28, 1894, before quoted. 

Should the distiller in such a case neglect to file the required new 
bond in an additional sum, the collector will refuse to allow him to 
make further deposits of spirits in his distillery warehouse, under the 
annual bond, until the liability on the outstanding bond is so reduced 
as to safely admit of such deposits being made. In all cases where 
an annual bond is filed, the distiller will enter his spirits for deposit 
each month , as required by section 4, act of May 28, 1880. The 
spirits so deposited in warehouse under the distiller’s annual bond 
will be reported on the collector’s bonded account 94A, part 1, in the 
same manner as spirits covered by a monthly warehousing bond. A 
separate report on Form 362, containing a recapitulation of the quan¬ 
tity warehoused, or rewarehoused, at each distillery under the vari¬ 
ous bonds herein prescribed, as also the quantity of spirits so bonded 
and remaining in warehouse on the first and last days of each month, 
will be furnished by collectors with the bonded account. 

The attention of collectors is especially called to the requirements 
of the law respecting the time in which warehousing bonds are to be 
given; as to the giving of new bonds in case of death, insolvency, or 
removal of the sureties to the original bonds, and as to the mode of 
procedure in case of failure or neglect on the part of the distiller of 
the spirits to comply with these requirements of the law. Collectors 
will be held liable on their official bonds for any and all losses to the 
United States occasioned by want of diligence on their part in secur¬ 
ing and preserving good and sufficient warehousing bonds. 

In case the distiller fails to pay the tax on his spirits within the 
time specified in his warehousing bond (Form 80 or 359) the collector 
will, instead of reporting such overdue taxes for assessment, as here¬ 
tofore, proceed to collect the tax in the manner prescribed in section 
4, act of May 28, 1880, before quoted. 


76 


The collector will first distrain upon the spirits as to which the tax 
is due and is a first lien (sec. 3251, Rev. Stat., as amended), and, if 
further distraint becomes necessary, upon the distillery property, 
which is also subject to the lien imposed by said section 3251. Where 
the spirits have been duly regauged under the provisions of section 
50, act of August 28,1894, as amended, distraint will be for the taxes 
ascertained to be due under the provisions of said act. 

Where the tax can not be collected by distraint, as above provided, 
the collector will immediately notify the Commissioner of Internal 
Revenue of the fact, stating in his letter of notification the character 
of the sureties on the bond, also his opinion as to the probability of 
securing the tax by suit on the bond, and requesting instructions as 
to bringing the suit. If the bond is found to be not a good one, he 
will state the reason why. He will also state when the bond was dis¬ 
covered to be not good or efficient, and what steps were taken by him 
to secure a new bond, as required by said act of May 28, 1880. 

WITHDRAWALS OF SPIRITS FROM BONDED WAREHOUSES UPON PAYMENT 
OF THE TAX. 

Section 3294 of the Revised Statutes, as amended by section 5 of the 
act of March 1,1879, and by section 5 of the act of May 28,1880, reads 
as follows: 

Any distilled spirits may, on payment of the tax thereon, be with¬ 
drawn from warehouse on application to the collector of the district in 
charge of such warehouse, on making a withdrawal entry in duplicate 
and in the following form: 

Entry for withdrawal of distilled spirits from warehouse . 

Tax-paid. 

Entry of distilled spirits to be withdrawn, on payment of the tax, 

from warehouse of distillery number -, situated in the - 

district of-, by-, deposited on the-day of-, 

anno Domini-, by--, in said warehouse. 

And the entry shall specify the whole number of casks or packages, 
with the marks and serial numbers thereon, the number of gauge or 
wine gallons and of proof gallons and taxable gallons, and the amount 
of the tax on the distilled spirits contained in them at the time they 
were deposited in. the distillery warehouse; and said entry shall also 
specify the number of gauge or wine gallons and of proof gallons and 
taxable gallons contained m said casks or packages at the time appli¬ 
cation shall be made for the withdrawal thereof; and on payment of 
the tax the collector shall issue his order to the storekeeper in charge 
of the warehouse for the delivery. One of said entries shall be filed 
in the office of the collector, and the other transmitted by him to the 
Commissioner of Internal Revenue. 

For provisions contained in section 50, act of August 28, 1894, as 
amended by the acts of March 3, 1899, and January 13, 1903, for 










77 


allowances on account of loss by leakage or evaporation of spirits 
while remaining in warehouses, see pages 156 and 157 of these 
regulations. 

LIMITATIONS OF THE ACT OF AUGUST 28, 1894, AS AMENDED. 

Under the conditions and limitations imposed by section 50 of the 
act of August 28, 1894, as amended, allowance for leakage or evap¬ 
oration should not be made when, upon a regauge of the spirits, the 
loss appears to have been the result of “ fault or negligence of the 
distiller,” or when the distiller does not request a regauge before the 
expiration of the time limited by law, or when, upon a regauge or 
reinspection made at the time of withdrawal of the spirits, the pack¬ 
ages are “ found to contain a larger quantity than shown by the first 
regaugealso that the allowance for loss on casks or packages of less 
capacity than 40 gallons shall not exceed one-half the allowance 
authorized for casks or packages of a capacity of 40 or more wine gal¬ 
lons, and that “ no allowance is to be made on casks or packages of a 
less capacity than 20 gallons.” 

NOTICE AND REQUEST, FORM 381. 

In order to obtain the allowance authorized the distiller must, 
before the expiration of the time limited by the statute, file with the 
collector of the district a notice and request for regauge on Form 381 
revised, unless the spirits are withdrawn prior to the expiration of 
that time, in which case the notice and request will be made on 
Form 179. 

Requests for regauge should be in duplicate , and should be plainly 
dated by the distiller, and the date of filing with the collector should 
be carefully recorded thereon. 

To avoid the risk attending delays in filing such notices, especially 
in districts where large quantities of spirits are to be regauged, it is 
suggested that such notices be filed at least fifteen days before the 
expiration of the seven years from the date of the original gauge of 
the oldest spirits described in the notice; also that the request cover 
all the spirits produced during a given month which then remain in 
the warehouse, such request to call for the regauge of each cask or 
package immediately at the expiration of seven years from the date 
of the original gauge. In no case, however, will any of the spirits 
embraced in the request be regauged prior to the expiration of the 
seven years unless upon special request of the distiller. 

Where the serial numbers of the packages to be regauged run con¬ 
secutively—that is, in unbroken sequence—the same may be grouped 
as 1 to 10, etc. But in no case should spirits of more than one month’s 
production be covered by any one request, Form 381. 


As the law requires not only a description of the spirits, but a 
description of the packages containing the spirits, it is only upon the 
receipt of a notice containing such description, and a request for a 
regauge of the spirits, that the collector is required to direct a gauger 
to regauge them, and to mark upon “each such package ” the number 
of gauge or wine gallons contained therein; that is to say, in each 
package specified in the notice and request. 

Any collector who directs a gauger to regauge a package not so spe¬ 
cifically described exceeds the authority conferred upon him by law, 
and will be held responsible for any loss of revenue occasioned by 
such act. 

In view of the requirements of the law, oral requests for regauge 
can not under any circumstances be accepted, and the filing of writ¬ 
ten requests must be actual and not constructive in order to obtain 
a regauge of spirits under the act named. No Government officer is 
authorized to fill in or date blank requests for distillers. 

When the distiller does not sign the request himself, the actual 
signer must be duly empowered to act in his stead, and such power 
must be of record in this office, and the mere printing or stamping of 
the name of the distiller Or the name of the distillery will not be 
sufficient. 

This office does not object to the distiller’s name (signature) being 
printed by a rubber hand stamp, provided that it is printed by a per¬ 
son specially authorized to do .so, who will append his own signature, 
prefixed by the word “ by ” and followed by the word “ attorney ” or 
“ agent.” His authority for signing the distiller’s name should be in 
writing, signed by the distiller and filed in the office of the collector, 
who wdll forward a copy of such power of attorney to this office. 

Every distiller of bonded spirits should furnish a statement, over his 
own signature, showing the names of all persons who have been em¬ 
powered to sign for him and in his stead notices, requests, or with¬ 
drawal papers relating to such spirits. This statement should show 
the exact period and extent of the power granted, and where a dis¬ 
tillery has been operated under two or more names such names and 
the exact periods during which spirits were originally gauged should 
be given. 

On the first day of each month supplemental statements, giving the 
information herein called for from date of last statement, will be 
required, and such monthly statements will show all abrogations of 
old powers, the granting of new ones, and any modifications of such 
powers to sign as aforesaid. 

As the above-named statements are received, collectors will satisfy 
themselves as to the accuracy of the same, and that the signatures 
are those of the distillers or their legally empowered representatives, 
append their certificates as to these facts, and forward them to this 


79 


office, retaining, however, a record of the information therein con¬ 
tained. 

Upon the receipt of these requests the collector will stamp or write 
thereon the exact date of such receipt by him, and he “ shall direct a 
gauger to regauge the spirits,” as required by section 50 above named, 
and such regauge will be made on the date of the expiration of the 
seven years limited by the law, unless an earlier date is specified by 
the distiller in his request. 

The order to the gauger must be signed by the collector or an em¬ 
ployee duly authorized to sign for him, and where a stamp is used 
the identity of the user must appear. 

Only one regauge upon request of the distiller is provided for in the 
law, and this will generally fix the allowance for loss, as stated above, 
but the actual tax is not determined until the second regauge upon 
withdrawal is made, for the reason that, should the said second re¬ 
gauge show a larger quantity of spirits in the package than that 
shown by the first regauge, then the tax must be collected upon the 
original gauge. No allowance can be made for additional outage 
occurring after the first regauge, even where the spirits are to be 
exported. (Treas. Dec. (1898), 18994.) 

Upon receipt of the duplicate reports of the gauger on these forms 
the collector will forward one of said reports to the Commissioner for 
review, in a separate cover and inclosed with no other report. 

The seven years named in the statute are held to expire at the close 
of business on the seventh anniversary of the day next preceding that 
upon which the original gauge was made; and if such day falls upon 
Sunday or a legal holiday, then upon the next preceding business day. 

When the spirits are not withdrawn at the time of the first regauge, 
the request and entry for withdrawal, tax paid, will be made upon 
Form 179, and in no case will the spirits be released until such second 
regauge is duly made and recorded. 

No blank (Form 179) will be approved unless the arrangement 
of the information therein conforms to that adopted in the forms 
furnished by this office. Every statement of every fact on these 
blanks furnished by this office has been so located thereon as to be 
most convenient in checking with the reports of distillers, storekeep¬ 
ers, gaugers, and collectors on other forms, and therefore any de¬ 
rangement of this order increases the work of those whose duty it is 
to make these checks, and often interferes with the orderly arrange¬ 
ment of these papers in the files of this office. It is therefore much 
preferred that only the blanks printed and furnished by this office be 
used. 

Hereafter each collector of internal revenue, when forwarding or 
returning to this office Forms 179, 206, or 381, will certify, if the 
facts warrant, that the requests for regauge on said forms are law- 


80 


fully made in due time, in due form, and by the distiller or his duly 
constituted representative, such as agent, attorney, administrator, 
assignee, etc., as the case may be, as required by section 50 of the act 
of August 28, 1894, as amended. 

Where spirits, regauged on application of the distiller, are not im¬ 
mediately removed from the warehouse, no allowance or credit for the 
loss so ascertained will be made at that time. 

Allowances for all such losses will be made only upon the removal 
of the spirits, subject, however, to the conditions imposed by the 
statute; and such allowances, when so made, will be reported by the 
gauger and by the storekeeper on the day the spirits are inspected and 
removed from the warehouse, and such allowances will be reported 
by the collector on his bonded account, as heretofore required. 

In all cases where spirits remain in Avarehouse after being so 
regauged the reports of the gauger should be filed, as to each ware¬ 
house, in the order in which the regauge Avas made, and Book No. 68 
(to be properly designated) may be used for this purpose. 

Upon the receipt of an application or entry for the withdrawal of 
such spirits (on payment of tax or otherAvise) such application or 
entry Avill be carefully compared with the report of the gauger above 
referred to, and all discrepancies disclosed by such comparison must 
be corrected before the spirits are allowed to be removed from the 
warehouse. 

The form of notice, and request of distiller, entry for Avithdrawal, 
the collector’s order to the gauger, the order of the collector to the 
storekeeper to deliver the tax-paid spirits, and the storekeeper’s state¬ 
ment of the date of the actual withdrawal are for convenience printed 
on one sheet of paper, known as Form No. 179, and should be pre¬ 
pared in duplicate. 

The tax will be paid Avhen the entry for withdrawal is made. 

The entry for withdraAval, the order of the collector to the store¬ 
keeper, and the storekeeper’s statement of the date of Avithdrawal are 
the only papers on Form 179 to be filled out when the withdraAval is 
made without a regauge, the tax being paid upon the quantity as 
shown by the original gauge. 

When tAvo or more Forms 179 are required to coA^er one day’s 
transaction, a recapitulation on Form 250 must be furnished. 

When spirits are gauged for entry into or withdrawal from Avare¬ 
house, the gauger will at the time the gauge is made deliver to the 
collector two reports on Form 59 for the use of the Government, one 
to be retained by the collector and the other delh^ered to the store¬ 
keeper, to be by him transmitted to the Commissioner, inclosed in 
and attached to his daily report on Form 86. (See instructions on 
Form 59, revised May 29, 1908.) 


81 


WITHDRAWAL FROM DISTILLERY WAREHOUSES AND OTHER BONDED WARE¬ 
HOUSES WITHOUT PAYMENT OF TAX. 

For forms of bonds and other papers and instructions relative to 
the withdrawal of spirits from distillery warehouses or from special 
of general bonded warehouses without payment of the tax for ex¬ 
portation, also for transfer to manufacturing warehouses, see Regu¬ 
lations No. 29, revised. 

For instructions relative to the withdrawal of spirits from ware¬ 
houses free of tax for the use of the United States, and of alcohol 
for use in chemical laboratories of scientific institutions or colleges, 
or for preserving specimens of anatomy, physiology, or natural his¬ 
tory belonging to such institutions or colleges, see regulations of the 
Secretary of the Treasury in the appendix to these regulations. (For 
instructions relative to the withdrawal of alcohol in bond for dena- 
turation, see Regulations No. 30, revised.) 

EXCESSIVE LOSSES OF DISTILLED SPIRITS IN BONDED WAREHOUSES. 

Section 4, act of May 28, 1880, provides: 

If it shall appear at any time that there has been a loss of distilled 
spirits from any cask or other package hereafter deposited in a dis¬ 
tillery warehouse, other than the loss provided for in section thirty- 
two hundred and twenty-one of the Revised Statutes of the United 
States, as amended, which, in the opinion of the Commissioner of In¬ 
ternal Revenue, is excessive, he may instruct the collector of the dis¬ 
trict in which the loss has occurred to require the withdrawal from 
warehouse of such distilled spirits, and to collect the tax accrued 
upon the original quantity of distilled spirits entered into the ware¬ 
house in such cask or package, notwithstanding that the time specified 
in any bond given for the withdrawal of the spirits entered into ware¬ 
house in such cask or package has not expired. 

A like provision is made in section 58 of the act of August 28, 1894, 
as to spirits deposited in general bonded warehouses or in special 
bonded warehouses. 

As the question of excessive leakage depends largely on the circum¬ 
stances under which the loss occurs, no fixed rule can be established 
in such cases. In view, however, of the allowance for loss provided 
in section 50, act of August 28,1894, as amended, any loss ascertained 
upon a regauge of a cask or package of a capacity of 40 or more wine 
gallons after the expiration of sixty-four months from date of original 
gauge which exceeds 20 proof gallons, or any loss found by such re¬ 
gauge of any cask or package of a capacity of less than 40 gallons 
which exceeds 12 proof gallons, will be reported immediately to the 
Commissioner of Internal Revenue, together with all the facts in the 
case. 


56815—08-6 


82 


When a regauge is made of packages before the expiration of sixty- 
four months from the date of the original gauge and the loss is found 
to be 50 per cent or more in excess of the maximum allowed by law 
for the time which has elapsed since the date of the original gauge 
and is in excess of 10 proof gallons as to packages of a capacity of not 
less than 40 gallons, or of 6 proof gallons as to packages of less capac¬ 
ity than 40 gallons, the collector will at once report the fact with all 
the circumstances and conditions surrounding the case to the Commis¬ 
sioner of Internal Revenue. 

The collector will also report to the Commissioner when the losses 
are smaller than those above specified where the condition of the 
warehouse, or the cooperage of the packages in the warehouse, is such 
as indicates a want of proper care on the part of the distiller in pre¬ 
venting unnecessary loss or wantage; or where the loss is of such 
extent as will materially affect the tax security afforded by the lien 
imposed by section 3251, Revised Statutes. 

FAULT OR NEGLIGENCE. 

It is clearly the purpose of the statute to provide allowances only 
for spirits actually lost by unavoidable leakage, soakage, or evapora¬ 
tion during the time the spirits have remained in warehouse. Losses 
resulting from defective cooperage, or through any fault or negli¬ 
gence of the distiller, should therefore in no case be allowed. 

EQUALIZING WANTAGE ILLEGAL. 

If any distiller or owner, either by himself or by one of his agents 
or employees, removes spirits from one package to another in the 
bonded warehouse for the purpose of equalizing the wantage, or for 
any other purpose except in case of removals under permit to new 
packages for exportation, or to preserve the spirits from loss or wast¬ 
age as provided by regulations, the collector will require the payment 
of the tax on the original gauge of all such packages, and no allowance 
will be made for any loss appearing therein. 

In this connection, attention is called to section 3256, Revised Stat¬ 
utes, which provides that “ whenever any person evades or attempts 
to evade the payment of the tax on any distilled spirits in any manner 
whatever, he shall forfeit and pay double the amount of the tax so 
evaded or attempted to be evaded.” Also to section 3257, which pro¬ 
vides that the distiller who defrauds or attempts to defraud the 
United States of any part of the tax on the spirits distilled by him 
shall forfeit the distillery, distilled spirits, and other property, and 
shall be subject to fine and imprisonment as therein specified. 

Hereafter storekeepers will not permit any person to enter or re¬ 
main in any distillery warehouse in their charge during their absence, 


83 


temporarily or otherwise, from such warehouse, and if it is necessary 
for the storekeeper to leave the warehouse while the distiller or owner 
of the spirits, or any cooper or other employee of such distiller or 
owner, is in the warehouse, the storekeeper shall cause each and every 
such person to leave the warehouse before him, and he shall, upon leav¬ 
ing the warehouse, securely lock the door thereof; and in all cases all 
testing, sampling, or examination of spirits for any purpose shall be 
done in the presence of the storekeeper, and all instruments used in 
the warehouse for such testing, sampling, or examination shall either 
be removed from the warehouse while not in actual use or shall be 
delivered to the storekeeper to be locked up by him in some secure 
place inaccessible to any other person. 

ASSESSMENTS FOR DEFICIENCIES AND FOR EXCESS OF MATERIAL USED. 

Under the provisions of sections 3182 and 3309, Revised Statutes, 
it becomes the duty of the Commissioner of Internal Revenue to make 
the inquiries, determinations, and assessments against distillers im¬ 
posed by section 3309, Revised Statutes, as amended; and, in order 
that there may be no unnecessary delay in making such assessment, 
collectors are hereby instructed to take such steps as will secure the 
forwarding of the distiller’s return on Form 14, and the storekeeper’s 
abstract on Form 88, within the time prescribed by law, which reports 
should be carefully examined by the collector in order to satisfy him¬ 
self that they are correct. In case of a grain or molasses distiller, 
the first point to be determined is whether the distiller has accounted 
for all the grain or molasses used and the spirits produced by him 
during the month for which the returns are rendered, which will be 
determined from the returns of the distiller on Form 14, the abstract 
of the storekeeper on Form 88, and any other available evidence. 
The next point to be determined is the 80 per cent of the producing 
capacity of the distillery for the month. This will be found by 
multiplying the number of gallons fixed by the survey as the product 
for twenty-four hours by the number of days on which the distillery 
was in operation during the month, or under the law was deemed to 
be in operation. Eighty per cent of this product is 80 per cent of the 
capacity as determined by the survey. 

In making this computation particular attention will be paid to 
changes in capacity resulting from opening or closing tubs. (See 
instructions under head “ Changes in capacity,” p. 60.) 

If the quantity of spirits actually produced is found to be correctly 
reported, and the quantity so reported is less than 80 per cent of the 
capacity as determined from the survey, the difference between the 
reported product and 80 per cent will be assessed. On this point 
the law is imperative. But if the quantity actually produced and 
reported equals or exceeds the 80 per cent no assessment is to be made. 


84 


Where, however, it is found that the distiller has actually produced 
more than he has reported or accounted for, and this amount exceeds 
the 80 per cent, the assessment is to be made upon the difference 
between the amount so found and the reported product, even though 
the reported product exceeds the 80 per cent, because the distiller 
should pay upon all the spirits produced by him. 

Suppose the actual product is found to be 5,000 gallons, reported 
product 5,000 gallons, 80 per cent of capacity 6,000 gallons, the dis¬ 
tiller would be assessed upon 1,000 gallons as a deficiency. 

Suppose, however, the actual product is found to be 6,500 gallons, 
reported product 5,000 gallons, 80 per cent of capacity 6,000 gallons. 
The difference between the reported product and 80 per cent is 1,000 
gallons, but between the reported product and actual product is 
1,500 gallons, upon which latter amount the assessment will be made. 

When the difference between the actual product and the reported 
product is greater than the difference between the 80 per cent and the 
reported product, the assessment will be upon the former quantity. 
When the reported product equals or exceeds the 80 per cent, but is 
less than the actual product, as above found, the assessment will be 
made upon the difference between the actual and reported product. 
But if in any case the actual product and the reported product are 
each less than the 80 per cent, the assessment must be made for the 
difference between the reported product and the 80 per cent. 

The product for which the distiller is entitled to receive credit as 
against the required product under the survey is that quantity of fin¬ 
ished spirits deposited in the cisterns in the cistern room by or before 
midnight of the last day of the month, and can not include any unfin¬ 
ished spirits remaining outside the cistern room at the close of the 
month. 

The next point to be determined is whether the distiller has used 
any grain or molasses in excess of the capacity of the distillery. 

In making this inquiry and determination, the quantity of grain or 
molasses used will be ascertained from the distiller’s return, the store¬ 
keeper’s monthly abstract on Form No. 88, and such other evidence 
as is available; the quantity of grain or molasses, in bushels and 
pounds or gallons, on hand in mash at the beginning of the month, 
will be added to that put into mash during the month, and from the 
total will be deducted the quantity on hand in mash at the end of the 
month, and in computing the bushels of grain or gallons of molasses 
used from the gallons of mash or beer brewed or fermented, the same 
course will be pursued, namely, the mash or beer on hand at the 
beginning of the month will be brought forward and added to that 
made during the month, and the quantity on hand at the end of the 
month will be deducted therefrom; and the remainder only, in either 
case, will be considered as the quantity of material used during the 
month. 


85 


Under this rule the material distilled during the month, being the 
sum of the various quantities distilled on the several working days of 
the month, is held to be the quantity of material used during the 
month. 

The total capacity of the distillery for the month (expressed in 
bushels of grain or gallons of molasses, as the case may be) is the sum 
of the different daily capacities of the distillery for the several work¬ 
ing days of the month. 

The inquiry and determination as to the excessive use of material 
which the Commissioner is required by law to make is not a matter 
of discretion, but rests solely in computation, and consists in an arith¬ 
metical comparison of the quantity of material so found to have been 
used with the total capacity of the distillery for the month in question. 

It will be observed that if the capacity of the distillery on each 
working day has been exactly equal to the material used—that is, 
distilled on that day—then the total capacity will equal the total 
material used, and no excess of material will be found; but if the 
capacity has on any day or days been less than the quantity of mate¬ 
rial used—that is, distilled on such day or days—then unless there 
has been a corresponding and equal overplus of capacity on some 
other day or days of the same month, the total capacity will not equal 
the total material used, and an excessive use of material will be 
found, for which the statute requires an assessment to be made. 

It will be observed that unless the aggregate capacity for the month 
equals the total material distilled during the month, an excess of 
material used must result, and be followed by an assessment equal to 
the tax on the spirits that should be produced from the quantity of 
grain used in excess of the capacity of the distillery for such month. 

When a change is made in the kind of material used, the change of 
capacity resulting therefrom will be deemed to take place on the day 
when the new material is distilled, so that the material and capacity 
may balance each other. 

Section 3264, Revised Statutes, as amended, provides that 45 gal¬ 
lons of mash or beer brewed or fermented from grain (except in sour- 
mash distilleries) shall represent not less than 1 bushel of grain, and 
7 gallons of beer or mash brewed or fermented from molasses shall 
represent not less than 1 gallon of molasses. The gallons of mash or 
beer reported as used, if brewed from grain, will be divided by 45, or 
if brewed from molasses by 7, or by such less number as shall be 
taken in the survey to represent a bushel of grain or a gallon of 
molasses. If the grain or molasses is correctly reported, this quan¬ 
tity in bushels or gallons should not exceed the surveyed capacity of 
the distillery in use during the month. If it exceeds the capacity in 
bushels of grain, or gallons of molasses (as the case may be), the 
quantity used in excess will be shown by the above computation. In 
determining the quantity of grain used, 56 pounds will be accounted 


86 


as a bushel. The excess in bushels of grain or gallons of molasses 
having been determined as above, an assessment will be made against 
the distiller for the number of proof gallons of spirits that should 
have been produced from the grain or molasses used in excess of 
capacity. 

Under the statute, as construed by the United States Supreme 
Court in the case of Stoll et al. v. Pepper, the following is the correct 
mode of computing the tax on distilled spirits in cases where grain or 
molasses is used in excess of the quantity allowed by the survey: 

First. Divide the whole number of gallons of the reported product 
of the month by the whole number of bushels of grain used during the 
month. The quotient so found will show the reported product of 
each and every bushel of such grain. Then multiply that quotient, 
i. e., the reported product of 1 bushel, by the number of bushels of 
grain allowed by the survey. The result will show the reported prod¬ 
uct of all the grain so allowed. If that reported product equals or 
exceeds 80 per cent of the surveyed capacity of the distillery, and the 
entire actual product has been reported, there exists no liability to 
assessment for or on account of the grain used under the survey. 
But if that reported product is less than 80 per cent of such capacity 
there is liability to an assessment for the deficiency. 

Second. If the reported product per bushel, found as above, is less 
than the full statutory estimate of the producing capacity per bushel, 
multiply the number of bushels of grain used in excess of the sur¬ 
veyed capacity by the difference between such reported product and 
such statutory estimate. The result will show the quantity upon 
which an assessment is to be made for and on account of the grain 
used in excess. 

The legal tax will thus be realized (1) upon the entire actual prod¬ 
uct of the grain used under the survey, but in no case on less than 
80 per cent of the surveyed capacity and (2) upon the entire actual 
product of the grain used in excess of the survey, but in no case on 
less than 100 per cent of the statutory estimate of the producing 
capacity of the grain so used. 

The foregoing rule applies equally to molasses distilleries, gallons 
of molasses being substituted for bushels of grain. 

Suppose, for example, the surveyed capacity for the time reported 
to be 300 bushels of grain, and 80 per cent of the spirit-producing 
capacity to be 960 gallons of spirits; the full statutory estimate per 
bushel of grain in the survey to be 4 gallons; the mash or beer used, 
15,750 gallons; the number of bushels of grain reported, 300; and the 
spirits reported produced 875 gallons. The excess of grain used will 
be found by dividing 15,750 by 45 (or by such other number as shall 
be taken in the survey to represent a bushel of grain), which will give 
350 bushels, or an excess of 50 bushels. Dividing the reported 


87 


product, 875 gallons, by 350, the bushels of grain used, shows the 
reported product of each bushel to be 2.50 gallons; this multiplied by 
300, the number of bushels of grain allowed by the survey, shows the 
reported product of all the grain allowed by the survey to be 750 gal¬ 
lons. As this reported product is less than 80 per cent of the sur¬ 
veyed capacity, the difference, 210 gallons, is the -quantity to be 
assessed as a deficiency. 

The difference between the reported product of each bushel, 2.50 
gallons and 4 gallons, the statutory estimate, is 1.50 gallons; this mul¬ 
tiplied by 50, the grain used in excess, gives 75 gallons, the quantity 
upon which an assessment is to be made on account of such excess. 

All assessments for excesses and deficiencies made under section 
3309, Revied Statutes, as amended, will be at the rate of $1.10 for 
each proof gallon. 

STATUTORY RELIEF IN CASE OF ASSESSMENTS PROPOSED OR 
MADE UNDER SECTION 3309, REVISED STATUTES. 

ASSESSMENTS FOR DEFICIENCIES AND EXCESS OF MATERIAL USED. 

Section 6 of the act of March 1, 1879, provides: 

That whenever, under the provisions of section thirty-three hun¬ 
dred and nine of the Revised Statutes, an assessment shall have been 
made against a distiller for a deficiency in not producing eighty per 
centum of the producing capacity of his distillery as established by 
law, or for the tax upon the spirits that should have been produced 
from the grain, or fruit, or molasses found to have been used in excess 
of the capacity of his distillery for any month, as estimated according 
to law, such excessive use of grain, or fruit, or molasses having arisen 
from a failure on the part of the distiller to maintain the capacity re¬ 
quired by law to enable him to use such grain, or fruit, or molasses 
without incurring liability to such assessment, and it shall be made to 
appear to the satisfaction of the Commissioner of Internal Revenue 
that said deficiency, or that said failure, whereby such excessive use 
of grain, molasses, or fruit arose, was not occasioned by any want of 
diligence or by any fraudulent purpose on the part of the distiller, 
but from misunderstanding as to the requirements of the law and 
regulations in that respect or by reason of unavoidable accidents, then, 
and in such case, the Commissioner of Internal Revenue, subject to 
regulations prescribed by the Secretary of the Treasury, is authorized, 
on appeal made to him, to remit or refund such tax, or such part 
thereof as shall appear to him to be equitable and just in the premises: 
Provided , That no tax shall be remitted or refunded under the pro¬ 
visions of this section upon any assessment made prior to January 
first, eighteen hundred and seventy-four: Provided further , That no 
assessments shall be charged against any distiller of fruit for any fail¬ 
ure to maintain the required capacity, unless the Commissioner shall, 
within six months after his receipt of each monthly report, notify 
such distiller of such failure so to maintain the required capacity. 


88 


It will be observed that the above-quoted portions of section 6, 
except the last proviso thereof, confer authority, under certain con¬ 
ditions, upon the Commissioner of Internal Revenue to abate or 
refund certain taxes assessed under the provisions of section 3309, 
Revised Statutes. They are, however, inserted in this connection, 
inasmuch as the authority conferred upon the Commissioner to abate 
or refund a tax already assessed would appear, without express pro¬ 
vision to the contrary, to afford him the necessary authority to 
refrain from an assessment under a like state of facts. 

In order, therefore, that the Commissioner may be placed in pos¬ 
session of all the essential facts in case of any proposed assessment 
under section 3309, the collector will, unless the interests of the Gov¬ 
ernment shall require an immediate assessment, upon receipt from 
the Commissioner of a list (Form 6984) of such proposed assess¬ 
ments, notify the distiller against whom the assessment is contem¬ 
plated, and afford him an opportunity to point out any error in com¬ 
putation which he may discover, and also to furnish evidence that 
the use of grain, fruit, or molasses by the distiller in excess of the 
capacity of the distillery has arisen from a failure on the part of the 
distiller to maintain the capacity required by law, and that the defi¬ 
ciency in production or the failure to maintain the capacity, as the 
case may be, was not occasioned by any want of diligence or by any 
fraudulent purpose on the part of the distiller, but was the result 
of a misunderstanding on his part as to the requirements of the law 
and regulations in that respect, or was occasioned by an unavoidable 
accident. 

In case such evidence, sufficient to satisfy the Commissioner that 
such deficiency or failure to maintain the capacity was occasioned by 
a misunderstanding of the law or regulations, or by an unavoidable 
accident, and not by any want of diligence or fraudulent purpose of 
the distiller, is forwarded to the Commissioner within thirty days 
after the Form 6984 is transmitted to the collector, the assessment will 
be omitted; otherwise the assessment will be made on the next ensu¬ 
ing monthly list, provided such satisfactory evidence is not received 
in time for consideration prior to the day on which such list is made 
up and forwarded to the collector. Such evidence, received after the 
expiration of the thirty days, if not received in time to be considered 
before the list is forwarded to the collector, will be considered in con¬ 
nection with any claim for abatement (Form 47) or refund (Form 
46) which may be subsequently forwarded by the distiller through 
the collector. The evidence furnished by the distiller must be in the 
form of affidavits, and must be taken under the conditions prescribed 
in these regulations, and must be accompanied by the sworn state¬ 
ments of the storekeeper and gauger on duty at the distillery during 


89 

the month in which the deficiency in production or excessive use of 
material occurred. 

In case it is claimed that such deficiency or excess was occasioned 
by reason of unavoidable accident, the storekeeper and gauger will, if 
cognizant of the facts, state (1) the nature and origin or cause of the 
accident and the circumstances connected with the same; (2) what 
efforts were made by the distiller and his employees or agents at the 
time of the accident to prevent its occurrence; (3) what precau¬ 
tions were taken by the distiller, his employees or agents, prior to the 
accident, to guard against its occurrence, and (4) whether the acci¬ 
dent was in any way attributable to any want of care, caution, atten¬ 
tion, diligence, skill, or discretion, or to fraudulent purposes on the 
part of the distiller or any of his employees or agents. The affidavits 
of the distiller and of others who may testify should also set forth 
(1) the nature and origin of the accident, (2) such other facts as 
will assist the Commissioner in determining whether the cause of the 
deficiency or failure was an accident, and (3) whether occasioned by 
any fraudulent purpose or want of diligence. If it is claimed that 
the deficiency or excess was occasioned by misunderstanding on the 
part of the distiller as to the requirements of the law and regulations, 
the affiants will testify (1) as to what opportunity the distiller had 
for information on these points; (2) they will also, in all cases, testify 
as to what efforts were made by the distiller and his employees and 
agents to maintain the capacity or to avoid the deficiency ( a ) during 
the month in which the failure or deficiency occurred, also (b) prior 
to the month in which the failure or deficiency occurred; (3) whether, 
in their opinion, such deficiency in production or failure to maintain 
the capacity, whereby the excessive use of material occurred, was 
occasioned by any want of diligence or by fraudulent purpose on the 
part of the distiller or his agents or employees; and the collector, in 
forwarding the evidence to the Commissioner, will also state his 
opinion on these points, and as to the propriety of omitting to make 
the assessment, or any part thereof, as may appear to him to be equi¬ 
table and just. 

In order to avoid expense and loss of time in the preparation of 
applications for relief in cases where the applicant is not entitled to 
relief, collectors will call attention to certain legal constructions 
which have been placed upon the terms “ accidents,” “ unavoidable 
accidents,” and “ diligence,” and which constructions must guide this 
office in the consideration of such applications, viz: 

Accidents . 

In determining what shall be considered an accident, it is held that 
not only will inevitable casualties or acts of Providence, or what may 


90 


be called irresistible forces be considered, but such unforeseen events, 
misfortunes, losses, acts, or omissions as are not the results of any 
negligence or misconduct on the part of the distiller or owner of dis¬ 
tilled spirits, or their agents or employees. 

If the facts relied upon resulted from the operations of nature, 
they must be something out of the ordinary course of things. It can 
not be considered an accident that the sun shines, that it rains, 
snows, freezes, thaws; that a river rises or falls at certain seasons of 
the year; that water becomes warm in the summer and cold in the 
winter. If either of these ordinary processes of nature is adduced as 
a reason why a tax should be abated, it must affirmatively appear 
that the change was so sudden and severe that it was out of the ordi¬ 
nary course of events and, therefore, could not be provided against. 

When a case of accident of the above character occurs, the distiller 
must at once give notice to the collector or deputy collector, so that 
the facts can be investigated and reported upon, and the immediate 
action of this office be had upon the question of suspending work. 

Unavoidable accidents. 

In placing a construction upon the words “ unavoidable accidents ,” 
as they relate to the operations of distilleries, it will be necessary to 
consider the facts and circumstances relied upon as grounds of relief 
in each case. The act of March 1, 1879, requires due diligence on the 
part of the distiller and his agents and servants, and if the circum¬ 
stances relied upon were the result of the negligence or misconduct 
of the distiller, or his agent or servant, he will have no claim to relief. 

Diligence. 

Diligence is the doing of things in proper time. As the opposite of 
negligence, it signifies, primarily, care, caution, attention, prompti¬ 
tude, skill, or discretion in the performance of an act. 

RELEASE FROM ASSESSMENTS FOR DEFICIENCIES CAUSED BY DESTRUCTION 

OF SPIRITS. 

Section 6 of the act of March 1, 1879, as amended by section 8 of 
the act of May 28, 1880, reads as follows: 

That whenever, under the provisions of section thirty-three hun¬ 
dred and nine of the Revised Statutes, an assessment shall have been 
made against a distiller for a deficiency in not producing eighty per 
centum of the producing capacity of his distillery as established 
by law, or for the tax upon the spirits that should have been pro¬ 
duced from the grain, or fruit, or molasses found to have been used 
in excess of the capacity of his distillery for any month, as estimated 
according to law, such excessive use of grain, or fruit, or molasses 
having arisen from a failure on the part of the distiller to maintain 


91 


the capacity required by law to enable him to use such grain, or fruit, 
or molasses, without incurring liability to such assessment, and it 
shall be made to appear to the satisfaction of the Commissioner of 
Internal Revenue that said deficiency, or that said failure, whereby 
such excessive use of grain, molasses, or fruit arose, was not occa¬ 
sioned by any want of diligence or by any fraudulent purpose on 
the part of the distiller, but from misunderstanding as to the require¬ 
ments of the law and regulations in that respect or by reason of 
unavoidable accidents, then, and in such case, the Commissioner of 
Internal Revenue, subject to regulations prescribed by the Secretary 
of the Treasury, is authorized, on appeal made to him, to remit or 
refund such tax, or such part thereof as shall appear to him to be 
equitable and just in the premises. And the Commissioner of Internal 
Revenue, upon the production to him of satisfactory proof of the 
actual destruction, by accidental fire or other casualty, and without 
any fraud, collusion, or negligence of the distiller, of any spirits in 
process of manufacture or distillation, or before removal to the dis¬ 
tillery warehouse, shall not assess the distiller for a deficiency in not 
producing eighty per centum of the producing capacity of his dis¬ 
tillery as established by law when the deficiency is occasioned by such 
destruction, nor shall he, in such case, assess the tax on the spirits so 
destroyed: Provided , That no tax shall be remitted or refunded under 
the provisions of this section upon any assessment made prior to 
January first, eighteen hundred and seventy-four: Provided further , 
That no assessments shall be charged against any distiller of fruit for 
any failure to maintain the required capacity, unless the Commis¬ 
sioner shall, within six months after his receipt of each monthly re¬ 
port, notify such distiller of such failure so to maintain the required 
capacity. 

The amendment consists in the introduction into the body of the 
section of a provision directing the Commissioner of Internal Revenue, 
upon the production to him of satisfactory proof of the actual destruc¬ 
tion, by accidental fire or other casualty, and without any fraud, col¬ 
lusion, or negligence of the distiller, of any spirits in process of 
manufacture or distillation, or before removal to the distillery ware¬ 
house, not to assess the distiller for a deficiency in not producing 80 
per cent of the producing capacity of the distillery, as established by 
law, when the deficiency is occasioned by such destruction; also 
directing the Commissioner, in such case, not to assess the tax on the 
spirits so destroyed. 

The direction to the Commissioner to omit an assessment for a defi¬ 
ciency under the circumstances just stated is coupled with the condi¬ 
tions as to the destruction being accidental and without fraud, col¬ 
lusion, or negligence of the distiller, as in case of one class of allow¬ 
ances provided for in said section 6, as originally enacted. 

When a distiller of spirits from grain or molasses is notified of a 
proposed assessment under section 3309, Revised Statutes, and he has 
reason to believe that the liability in whole or in part has been caused 
by an unavoidable accident or by a misunderstanding of the law and 


92 


regulations, and claims relief under section 6, act of March 1, 1879, as 
amended by section 8, act of May 28, 1880, affidavits will be required 
from the distiller, storekeeper, gauger, and other witnesses, if any, 
fully setting forth the facts and the extent to which the actual prod¬ 
uct or the required capacity has been affected by accidents or misun¬ 
derstanding. These affidavits should be sent to the deputy collector 
of the division in which the distillery is located, who should diligently 
inquire into, ascertain, and state the facts in the case, give estimates 
of the amount of loss, if any, of spirits occurring by unavoidable acci¬ 
dent or misunderstanding of the law and regulations, certify to the 
same, and transmit the papers to the collector, who will then write 
out his opinion of the evidence in the case, with his recommendations 
as to omitting the proposed assessment or any part thereof, as may 
appear to him equitable and just, and then forward all the papers, 
with his opinion, to the Commissioner. A strict compliance with these 
instructions may avoid the calling for additional papers. 

Collectors are expected to keep in their respective offices the evi¬ 
dence that grain and molasses distillers have been, prior to assess¬ 
ment, notified of their liability for excess or deficiency, or for both, as 
the case may be. 

PROCUREMENT AND PRESERVATION OF EVIDENCE IN CASES OF IRREGULAR 

SUSPENSIONS OF DISTILLERIES BY STOREKEEPERS AND OF LOSS OF MATE¬ 
RIALS BY CASUALTIES. 

1. Under the law and regulations the legal suspension of a distillery 
is not effected until the collector or one of his deputies visits the dis¬ 
tillery and affixes locks to the furnace doors, except that in cases of 
involuntary suspension by reason of accident, if the deputy collector 
fails to reach the distillery at the time stated in the notice, the store¬ 
keeper may affix the locks and disconnect the machinery; but to make 
the suspension effective in such a case from the date the locks are 
affixed by the storekeeper the deputy must visit the distillery and 
verify the fact of suspension and the storekeeper’s statement as to 
beer on hand, to all of which he must certify^ 

2. In case of suspension at a distillery which can not be recognized 
as legal because the deputy collector fails to arrive at the time stated 
in the notice given by the distiller of his desire to suspend, the dep¬ 
uty collector will visit the distillery as soon as possible, and in addi¬ 
tion to the usual certificate on the notice he will, if in his judgment 
all operations actually ceased at the time stated in the distiller’s 
notice of intention to suspend, at once take affidavits of the distiller 
and storekeeper, which should set forth the time of suspension, 
whether the furnace doors were locked and the machinery was so dis¬ 
connected as to render distillation impossible, by whom locked and 
disconnected, and whether the distillery was operated between the 


93 


date of such suspension and the time of the visit of the deputy col¬ 
lector. The deputy will then forward these affidavits to the collector, 
with a statement as to the condition in which he found the distillery, 
and whether in his opinion the statements made by the distiller 
and storekeeper are true. If the deputy collector does not visit the 
distillery within five days after the suspension by the storekeeper- 
gauger, the deputy should explain the cause of the delay. 

3. Affidavits will also be required of the distiller and storekeeper 
in cases where materials for distillation and spirits in cisterns have 
been destroyed by unavoidable accident, and it will be the duty of 
deputy collectors to procure such affidavits and forward them to the 
collector with his statement as soon as possible after casualties occur, 
as the officers who are on duty can then more readily give the facts 
and proper estimates of such materials and spirits destroyed than at 
any subsequent time. 

4. As the days of suspension and resumption are regarded as work¬ 
ing days in ascertaining the distiller’s liability, even though no work 
be done on those days, it is incumbent upon the distiller, in order to 
avoid the danger of an assessment for deficiency, so to fix the time in 
his notice of suspension that the locks may be affixed on the day all 
work is concluded in the distillery, and not on the morning after, and 
so to fix the time of resumption that the locks may be removed on 
the day he intends to commence work, and not on the evening before 
work is commenced, as is sometimes done. The deputy should be 
prompt in his attendance at the distillery to lock and unlock furnace 
doors on the day and hour stated in the notice. 

5. Collectors are earnestly requested to instruct their deputies to 
procure such data, in order that, when notified by this office that dis¬ 
tillers are found legally liable for deficiencies in production of spirits 
for months in which irregular suspensions take place, or are charged 
with an excess of materials used, owing, perhaps, to casualties, such 
data may then be ready, in explanation of the liability, to be for¬ 
warded with the collector’s opinion and recommendation, as required 
by these regulatioxis. 

RECTIFIERS. 

Any person who rectifies, purifies, or refines distilled spirits or wines 
by any process other than as provided for on distillery premises, and 
every wholesale or retail liquor dealer who has in his possession any 
still or leach tub, or who keeps any other apparatus for the purpose 
of refining in any manner distilled spirits, and every person who, 
without rectifying, purifying, or refining distilled spirits, shall, by 
mixing such spirits, wine, or other liquor with any materials, manu¬ 
facture any spurious, imitation, or compound liquors for sale under 
the name of whisky, brandy, gin, rum, wine, spirits, cordials, wine bit- 


94 


ters, or any other name, is to be regarded as a rectifier and as being 
engaged in the business of rectifying. 

Section 3319, Revised Statutes, declares it to be unlawful for any 
rectifier, wholesale or retail liquor dealer to purchase or receive dis¬ 
tilled spirits in quantities exceeding 20 gallons from any person not 
an authorized distiller, rectifier, or wholesale liquor dealer, except at 
judicial sales, or sales by an authorized auctioneer. 

Section 3317, Revised Statutes, provides that— 

Every person who engages in, or carries on, the business of a recti¬ 
fier with intent to defraud the United States of the tax on the spirits 
rectified by him, or any part thereof, or with intent to aid, abet, or 
assist any person or persons in defrauding the United States of the 
tax on any distilled spirits, or who shall purchase or receive or rectify 
any distilled spirits which have been removed from a distillery to a 
place other than the distillery warehouse provided by law, knowing 
or having reasonable grounds to believe that the tax on said spirits, 
required by law, has not been paid, shall, for every such offense, be 
fined not less than one thousand dollars nor more than five thousand 
dollars, and imprisoned not less than six months nor more than two 
years. 

SIGNS. 

Every person engaged in rectifying spirits is required (sec. 3279, 
Rev. Stat.) to place and keep conspicuously on the outside of his rec¬ 
tifying establishment a sign, exhibiting in plain and legible letters 
not less than 3 inches in length, painted in oil colors or gilded, and of 
a proper and proportionate width, the name or firm of the rectifier 
with the words “ Rectifier of spirits.” 

Rectifiers are prohibited from putting up any sign indicating that 
they are distillers. Although the lawful sign at a distillery is “ Regis¬ 
tered distillery,” yet it is held that section 3279 prohibits any sign 
being put up which would indicate to the public that the business of 
distilling may be carried on at a place which is not a lawfully author¬ 
ized distillery. 

RECTIFIERS TO AFFORD FACILITIES FOR EXAMINATION OF PREMISES. 

Section 3277, Revised Statutes, provides that on demand of any 
internal-revenue officer every rectifier shall furnish convenient ladders 
to enable the officer to examine any vessel or utensil on his premises, 
and shall furnish all assistance, lights, tools, or other things necessary 
for inspecting the premises, and shall open for examination all doors, 
boxes, packages, and all casks, barrels, and other vessels. 

Section 3278 makes it lawful for any internal-revenue officer to 
break ground on a rectifier’s premises, or adjoining thereto, to search 
for any pipe, private conveyance, or utensil. 


95 


BOOK TO BE KEPT BY RECTIFIER. 

Under the provisions of section 3318, Revised Statutes, every recti¬ 
fier is required to provide a book (Form 52) to be prepared and kept 
in such form as may be prescribed by the Commissioner of Internal 
Revenue, and to furnish complete transcripts of the entries therein. 
(See instructions herein under “ Book to be kept by wholesale liquor 
dealers and rectifiers.”) 

PRESCRIBED DISTANCES AS APPLIED TO RECTIFYING ESTABLISHMENTS. 

The business of rectifying distilled spirits can not be carried on on 
any premises distant less than 600 feet in a direct line from a dis¬ 
tillery. (Sec. 3280, Rev. Stat.) 

Under the provisions of section 3282, Revised Statutes, as amended, 
no rectifying house can be permitted within 600 feet of any factory 
where vinegar is manufactured by the employment of alcoholic 
vapor, except in cases of vinegar factories established prior to March 
1, 1879. (See pages 226 to 230 herein.) 

RECTIFIERS’ SPECIAL TAX. 

Persons rectifying less than 500 barrels a year, counting 40 proof 
gallons to the barrel, must pay a special tax of $100. 

Persons rectifying 500 barrels and above a year must pay a special 
tax of $200. 

Any person who shall carry on the business of a rectifier without 
having paid the special tax as required by law thereby becomes liable 
(section 3242a, Compilation of 1900) to fine, imprisonment, and for¬ 
feiture of property. 

The attention of collectors is called in this connection to the provi¬ 
sions of sections 3259 and 3280, Revised Statutes, and especially to 
the penalty imposed in the last proviso of the third paragraph of sec¬ 
tion 3244, as amended, which provides that no officer shall collect any 
special tax for rectifying distilled spirits on any premises distant less 
than 600 feet in a direct line from any distillery. And every officer 
who collects any special tax in violation of this proviso shall be liable 
to a penalty of $5,000 for each offense. 

The payment of the special tax as a rectifier does not relieve any 
person from the payment of the special tax as a wholesale liquor 
dealer on account of the sales of spirits, whether the same be of his 
own rectification or otherwise. 

LISTS OF RECTIFIERS WHO HAVE PAID SPECIAL TAX TO BE FORWARDED. 

Collectors will report to this office on the 1st of August in each 
year the names and places of business of all persons who have paid a 
special tax as rectifiers. 


96 


rectifiers’ NOTICE-FORM 27 B. 

Section 3259, Revised Statutes, provides that every person engaged 
in, or intending to be engaged in, the business of a distiller or recti¬ 
fier, shall give notice in writing, subscribed by him, to the collector 
of the district wherein such business is to be carried on, stating his 
name and residence, and if a company or firm, the name and residence 
of each member thereof, the name and residence of every person inter¬ 
ested or to be interested in the business, the precise place where said 
business is to be carried on, and whether of distilling or rectifying; 
and if such business is carried on in a city, the residence and place 
of business shall be indicated by the name of the street and number of 
the building. 

In case of a rectifier, the notice shall state the precise place where 
such business is to be carried on, the name and residence of every per¬ 
son interested or to be interested in the business, the process by which 
the applicant intends to rectify, purify, or refine distilled spirits, the 
kind and cubic contents of any still used or to be used for such pur¬ 
pose, the estimated quantity of spirits which can be rectified, purified, 
or refined every twenty-four hours in such establishment, and that 
said rectifying establishment is not within six hundred feet, in a 
direct line, of the premises of any distillery registered for the distil¬ 
lation of spirits. In case of any change in the location, form, capac¬ 
ity, ownership, agency, superintendency, or in the persons interested 
in the business of such distillery or rectifying establishment, or in 
the time of fermenting the mash or beer, notice thereof, in writing, 
shall be given to the said collector, or proper deputy collector, of the 
district within twenty-four hours after such change; and any deputy 
collector receiving such notice shall immediately transmit the same 
to the collector of the district. Every notice required by this section 
shall be in such form, and shall contain such additional particulars, as 
the Commissioner of Internal Revenue may, from time to time, pre¬ 
scribe. Every person who fails or refuses to give such notice shall 
pay a penalty of one thousand dollars, and shall be fined not less than 
one hundred dollars nor more than two thousand dollars; and every 
person who gives a false or fraudulent notice shall, in addition to 
such penalty or fine, be imprisoned not less than six months nor more 
than two years. 

This notice will be given to the collector on Form 27B in duplicate, 
by each person, firm, or corporation before engaging in the business 
of rectification, and on the 1st day of July in each year by those con¬ 
tinuing in said business. 

Collectors will forward the duplicate notice to the Commissioner of 
Internal Revenue immediately upon its receipt, and file the original 
in their offices. 

On the duplicate so forwarded an entry showing the amount of 
special tax which the rectifier in his capacity as rectifier has paid for 
the period designated in the notice will be made at the close thereof 
and above the signature of the collector or deputy collector. 

In case of any change in the location, form, capacity, ownership, 
agency, superintendency, or in the persons interested in the business 


97 


of such rectifying establishment, a new notice on this form must be 
given to the collector or deputy collector of the division within twenty- 
four hours of such change. 

Under the provisions of section 3244, Revised Statutes, the proc¬ 
esses of distillation and rectification can not both be carried on within 
the distance of 600 feet in a direct line; and any collector who col¬ 
lects any special tax in such case is liable to a penalty of $5,000. 

Rectifiers having or using any still or distilling apparatus must 
register the same, as provided in section 3258, Revised Statutes, as 
well as describe the same on Form 27B. 

Under the head of “ Number of leach and mixing tubs, and capac¬ 
ity of each,” on this form, no vessels are to be described except such 
as are in the nature of fixtures, or such as are habitually used in the 
process of rectification; and every such vessel must be marked in 
plain and legible characters, in oil colors, not less than 3 inches long, 
“ 27B,” followed by a serial number for identification. 

Where compounding is performed in original packages exclu¬ 
sively, that fact will be stated under the said heading. 

In stating the kinds of liquids proposed to be used in and to be 
produced by rectification, the classification set forth on pages 162, 
181, and 182 herein will be observed. 

The name and address of every person interested or to be inter¬ 
ested in the business, etc., must be stated in the proper space, except 
in case of notices given by incorporated companies, when the names 
and addresses of the officers of the corporation should be given. 

The signature to the notice, when given by an individual, must in 
all cases be made by the rectifier in person, or in his name by his 
authorized agent or attorney. 

In case of a firm the signature must be made in the firm name by a 
member of the firm, or by some person duly authorized as above. 

In case of a corporation the signature must be made in the name 
and under the seal of the corporation by the proper officer thereof. 

RECTIFIER’S NOTICE, FORM 122. 

Section 8, act of March 1, 1879 (section 3317#, Compilation of 
1900), as amended by the act approved July 16, 1892, provides that— 

When any rectifier intends to rectify or compound any distilled 
spirits he shall, before emptying any package of distilled spirits for 
that purpose, give notice in duplicate to the collector of internal 
revenue for the district of his intention so to rectify, and submit such 
package for the inspection of a United States gauger, who shall duly 
weigh or gauge such package and its contents and make due return 
thereof, and such spirits shall not be emptied for rectification, nor 
rectified or compounded in the package, until gauged or weighed as 
herein above provided. And such notice and return shall be made in 


58815—08-7 


98 


such form and contain such particulars as the Commissioner of Inter¬ 
nal Revenue, with the approval of the Secretary of the Treasury, may 
from time to time prescribe. 

Under the above provision of law it is directed that whenever any 
rectifier proposes to empty any spirits for the purpose of rectifying, 
purifying, refining, redistilling, or compounding the same, either in 
fact or, as in the case of mixing in the packages, constructively, he 
shall, before emptying any package for that purpose, or before com¬ 
pounding in the package, give notice of such intention to the collector 
of the district upon Form 122, revised, in duplicate, and enter in the 
proper place thereon the number of casks or packages, and, in the 
proper columns, the serial number of each, the kind of stamps, and 
the serial number of each, the contents in wine gallons and proof gal¬ 
lons, and the proof as shown by the marks, the name of the spirits, 
by whom produced, rectified, or put up, the district where produced, 
the date of the original gauge, and by whom gauged. 

Rectifiers will take care to state the serial number of stamps cor¬ 
rectly, and also to enter the same in the proper column. Nonobserv¬ 
ance of this rule frequently necessitates the rendering of an amended 
notice. 

The rectifier’s notice, Form 122, will be required in all cases where 
the spirits are intended to be rectified by any process, and must be 
presented at the collector’s office a sufficient time before dumping to 
secure the attendance of a gauger to make an actual gauge and weight 
of the spirits intended to be dumped. 

Where spirits are returned on Form 122, which are covered by tax- 
paid stamps which were affixed at time of withdrawal from distillery 
warehouse, or from a general or special bonded warehouse, the recti¬ 
fier will enter in the appropriate columns, on Form 122, the contents 
as shown by marks made at time of such withdrawal regauge, the 
date of the regauge, and the name of the gauger by whom it was 
performed. 

The rectifier having filled the blank spaces in the notice at the head 
of this form, signed the same, and made entries in all of the columns 
except those under the heading “ Return of spirits gauged,” will for¬ 
ward the notice in duplicate to the collector of the district, who, on its 
receipt, will deliver it to a gauger with instructions to carefully gauge 
and inspect each package of spirits therein described; cut out slips 
from the stamps on said packages; make a detailed report of such 
gauge and inspection in the column “ Return of spirits gauged,” and, 
after signing the certificate at the foot of the form, return it with the 
slips of stamps attached thereto. 

Gaugers are forbidden to gauge any spirits for dumping, either in 
fact or constructively, until directed to do so on the form by the 
collector. 


99 


All tax-paid, rectifiers’, and wholesale liquor-dealers’ stamps and 
stamps for imported spirits are issued with a slip of paper affixed to 
the back of each stamp in order to prevent the portion required to be 
cut out from adhering too firmly to the wood. Gaugers detailed for 
duty at rectifying houses will, whenever packages having thereon 
tax-paid stamps are gauged for the purpose of being dumped for 
rectification, carefully cut out with a sharp instrument that portion of 
the stamp upon which is shown the serial number of the stamp, name 
of the distiller, proof gallons, and the serial number of the package. 
These slips are to be securely attached to a slip of paper in such a 
manner as that the above-described portion of each stamp may be 
readily examined, and said slip of paper must be securely attached 
to the Form 122, whereon the gauging is reported, and returned by 
the gauger to the collector, who will at once forward the same to 
this office. 

Whenever a package of spirits bearing a rectified-spirit stamp is 
gauged for the purpose of being dumped for rectification, that por¬ 
tion of the stamp on which is printed the serial number, the proof 
gallons, the denomination of the stamp, and the district and State 
will be carefully cut out by the gauger in the same manner as a por¬ 
tion of the tax-paid stamp is cut out and attached to a slip of paper, 
and such slip attached to the Form 122 as above required in the case 
of tax-paid stamps. 

Whenever a package of spirits bearing a wholesale liquor-dealer’s 
stamp is gauged for the purpose of being dumped for rectification, 
such stamp will be cut from top to bottom, between the words “ proof ” 
and “ collector,” which will be found near the bottom of the stamp, 
and the portion so cut must embrace the entire width between the 
said words, and the slip will be attached to the slip of paper and Form 
122 as above described. 

Whenever a package of spirits bearing a stamp for imported spirits 
is gauged for the purpose of being dumped for rectification there will 
be cut from said stamp that portion upon which is shown the kind and 
serial number of the stamp, the date of issue, the name of the dealer, 
the number of wine gallons, the kind and number of the stamp on 
package from which the spirits were taken, the original and the 
present proof, and the name and district of the collector. 

Where a stamp has been mutilated by accident, and the portion 
described can not be returned by reason of having been lost or totally 
destroyed, an affidavit setting forth all the facts in the case will be 
made by the rectifier, and be attached to Form 122 and forwarded 
therewith to the collector. 

If the collector is satisfied that the statements are in all respects 
true, he will attach his certificate to that effect and forward the Form 
122 and affidavit to this office. 


100 


Where the gauger determines the contents of the packages by weigh¬ 
ing, he will enter the gross weight in column 9 on Form 122, the tare 
in column 10, the net weight in columns 12 and 13, and leave column 
11 blank. 

The gauger will exercise particular care to see that the correct foot¬ 
ing of column 18 is entered at the bottom thereof. Failure to observe 
this requirement frequently renders an amended return necessary. 

The gauger will certify at the foot of the form, giving date, that he 
made an actual gauge of each package of the spirits described in the 
form; that he cut out the portion of the stamps required by regula¬ 
tions ; attached the same to the form, and that the column “ Return 
of spirits gauged ” is correctly filled up. 

Whenever, by reason of the destruction of the portion of the stamp 
required to be cut out, or from other cause, the gauger erases any 
portion of the certificate, he will state the reason for such erasure in 
a footnote on the form. 

Any gauger who is found to have signed the certificate in blank, or 
to have given a false certificate, will be recommended for dismissal 
from office. 

In all cases gaugers will give the exact date on which they made 
the actual gauge. 

If less than the contents of a package, or packages, is dumped, the 
gauger will enter in the columns “ Return of spirits gauged ” the 
actual quantity emptied from each package. 

The gauger having gauged each package of spirits described in the 
notice, Form 122, and cut out the portion of the stamps required by 
these regulations to be attached to the notice, may leave the spirits to 
be emptied by the rectifier. 

SWEETENED SPIRITS DUMPED FOR RECTIFICATION. 

Whenever rectified spirits are reported for dumping which contain 
saccharine matter or other material to such an extent that no indica¬ 
tion is shown on the hydrometer stem, such spirits will be regarded 
as “No Proof ” spirits. When an incorrect indication is shown by 
the stem, and the presence of saccharine matter in large proportions 
is unmistakably apparent, the spirits will be considered as “Apparent 
Proof ” goods. 

Spirits marked and sold as whisky, rum, gin, brandy, etc., even 
though they contain a percentage of saccharine matter, will be treated 
precisely as unsweetened spirits. Their quantity will be ascertained 
by weighing, and their proof will be marked and reported according 
to the actual reading, of the hydrometer. Such cordials, liqueurs, and 
other compounds as are well known to contain a large proportion of 
saccharine matter will be gauged by the rod and reported as “ No 


101 


Proof ” or “Apparent Proof,” as the case may require, but this pro¬ 
vision will be strictly confined to the artificial compounds, of which 
saccharine material is recognized as a large and necessary ingredient. 

(a) Reporting sweetened spirits whose proof is known . 

Where packages of sweetened spirits which have their actual proof 
and actual proof gallons marked as hereinafter required are subse¬ 
quently dumped for compounding or blending, without admixture 
with sweetened goods whose proof is not known, the wine gallons as 
determined by the gauger will be entered in column 16, and the actual 
proof gallons as marked on the package will be entered in column 18 
on the notice, Form 122, and the actual proof as marked on the pack¬ 
age will be entered in column 17, preceded by the letters “Act. P.” 

(h) Reporting sweetened spirits whose proof is not known . 

In giving notice of intention to dump packages of sweetened spirits 
whose actual proof is not known, or which are to be mixed or blended 
with sweetened spirits whose actual proof is not known, the rectifier 
is required to employ a separate notice, Form 122. In such cases the 
gauger in making return of spirits gauged on Form 122 will enter 
the wine gallons contained in each package in column 16, “Net wine 
gallons,” and the corresponding entry in column 18, “ Proof gallons,” 
will be “ 0.” The entry in column 17, “ Proof,” will show the “Ap¬ 
parent proof ” preceded by the letters “A. P.,” or in case of no proof 
spirits it will be “ 0.” No value whatever will be given in the account 
of spirits dumped to the proof gallons or apparent proof gallons of 
such spirits, but the wine gallons thereof, as shown by the footing of 
column 16, will be entered in a separate account to be kept on Records 
64 and 39. A suitable space in said records, to be headed “Account 
of Sweetened Spirits ” will be adapted for this purpose. 

(<?) Reporting sweetened spirits dumped for redistillation. 

Where a rectifier dumps sweetened spirits for the purpose of re¬ 
covering unsweetened spirits therefrom by redistillation, he is 
required to give notice of his intention so to do on a separate Form 
122, entering in the blank after the * in the first line of the notice the 
word “ redistilling,” so that it will read “ * * * I will empty for 

the purpose of redistilling, * * *.” In such cases the gauger will 

determine the wine-gallons contents of each barrel included in the 
notice by the use of the gauging rod. He will also, by the use of a 
wine still determine the actual proof of the spirits gauged by him, 
and from the wine gallons and proof thus determined he will find the 
actual proof gallons by reference to Table No. 4 of the Gaugers’ 
Manual. Where two or more packages of sweetened goods, all of the 


102 


same kind and quality, are covered by the same notice, it will not ordi¬ 
narily be necessary for a separate determination of the proof of each 
package to be made. In such cases a small sample should be taken 
from each barrel and the samples thus procured thoroughly mixed, 
and a proper quantity of the mixture tested by the wine still. The 
♦ result thus arrived at will be taken to be the proof of the contents of 
the several packages covered by the notice. The wine gallons will 
be entered in column 16 and the proof gallons in column 18 on the 
Form 122. The footings of these columns will be carried to the regu¬ 
lar account, that of column 18 being entered on Records 64 and 39, 
and that of column 16 on Record 39. 

In determining the true per cent of proof by means of the wine 
still, the following instructions will be observed: Fill the cylinder 
to the upper mark with the liquid to be tested (having previously 
ascertained the temperature of the liquid) ; empty the measured 
liquid into the still, letting it drain as completely as possible; then fill 
the cylinder with one-half the original volume (the lower mark) 
with water and rinse it out, pouring the water into the still. Connect 
the cylinder with the tail of the condenser, using the cylinder to re¬ 
ceive the distillate. Close the still and make all the connections tight 
and fill the condenser with cold w T ater. If the water used for con¬ 
densation is above 80° F., use ice to cool it. Keep the water circulat¬ 
ing through the condenser during distillation. Light the alcohol 
lamp under the still, and continue the distillation until nearly the 
original volume taken has been collected in the receiver. Conduct 
the distillation at as low a temperature as possible, so as to avoid 
frothing or priming in the still. Too rapid distillation will involve 
the loss of alcohol by imperfect condensation. Put out the lamp, dis¬ 
connect the receiver, and bring its contents exactly to the tempera¬ 
ture noted when the cylinder was filled with the original liquid. 
When the liquid is at the noted temperature, add sufficient water at 
the same temperature to bring the volume exactly to the mark. Close 
the open end of the cylinder with the palm of the hand and invert 
the cylinder and its contents slowly four or five times in order to 
insure a thorough mixing of the liquid. Take the reading of the alco¬ 
holometer and thermometer and correct the reading of the former 
for the observed temperature according to Table IV in Regulations, 
No. 28, revised. It should be borne in mind that the result thus 
arrived at represents the percentage of alcohol by volume, which 
must be multiplied by 2 in order to give the true per cent of proof. 

DISPOSITION OF THE FORM 122 AND GENERAL PROVISIONS RELATING 

THERETO. 

The gauger will return the completed notice, with the stamps at¬ 
tached to the duplicate, as directed, to the collector as soon as practi¬ 
cable. 


103 


As soon as the collector receives the complete notice from the 
gauger, he will see that it is correct and complete in all particulars, 
including the indorsement on the back, and at once forward the dupli¬ 
cate to the Commissioner of Internal Revenue, and file the original 
in his office. 

Collectors will in no case issue stamps for rectified spirits until 
notice on this form is filed, nor for an amount exceeding in any in¬ 
stance the aggregate number of proof gallons specified on this form. 

Should a rectifier wish to dump a package from which a portion of 
the spirits has been sold by him as a wholesale liquor dealer, he will 
make application on Form 92 for a stamp to cover the spirits remain¬ 
ing in the package, and attach said stamp, as hereinbefore required. 

He will then transfer such package to himself as a rectifier, report¬ 
ing such transfer on his book (Form 52), after which the notice on 
Form 122 may be given in the usual manner. 

Any delay or irregularity on the part of the rectifier in giving said 
notice on Form 122 will be reported to the Commissioner of Internal 
Revenue. 

After the notification has been given on Form 122, and the spirits 
gauged for rectification, the process of rectifying must at once be 
entered upon and completed as soon as practicable. 

NOTICE OF COMPLETION OF THE PROCESS OF RECTIFICATION ANI) REQUEST 
FOR THE STAMPING OF THE SPIRITS, ON FORM 237. 

Under the authority conferred in section 66 of the act of August 28, 
1894, it is prescribed that, until otherwise provided, all casks or pack¬ 
ages containing 5 wine gallons of spirits or more, filled for shipment, 
sale, or delivery on the premises of duly qualified rectifiers, shall be 
gauged, marked, and stamped by United States gaugers. 

Upon completion of the process of rectification the rectifier will, 
therefore, give notice and make request for gauge on Form 237, in 
duplicate, stating in case of unsweetened spirits, as accurately as 
practicable, the aggregate number of wine and proof gallons contents 
thereof, and following in case of sweetened spirits the practice here¬ 
inafter prescribed. 

In giving notice of completion of rectification on Form 237 the 
rectifier will be required to state in the body of the notice and over 
his signature the name of the spirits according to the classification on 
pages 181 and 182 herein. 

Having thus completed the notice and signed the same, the rectifier 
will hand it directly to the United States gauger assigned to duty at 
the establishment, who thereupon will immediately ascertain from 
examination of Record 64 whether the rectifier has standing to his 
credit fully as many gallons of unstamped rectified spirits as set forth 
in said notice. 


104 


If it thus appears that the rectifier is entitled to have stamped the 
entire quantity embraced in his notice, the gauger'will proceed to 
gauge and stamp such spirits, and make detailed report of the gauge, 
on Form 237, having first filled the certificate thereon as to the state 
of the account with the rectifier. 

In case it appears from the examination above directed that the rec¬ 
tifier has not standing to his credit the full number of gallons em¬ 
braced in his notice the gauger will only gauge and stamp that 
quantity of spirits which the account with the rectifier, Record 64, 
shows him entitled to have stamped. 

The aggregate proof gallons (or wine gallons in a proper case) will 
be entered in the appropriate space on Record 64. 

United States gaugers will not gauge or stamp spirits, after rectifi¬ 
cation, except when so requested by the rectifier on Form 237, as above, 
when they will report each package separately, and fill all of the col¬ 
umns on the return, except as provided below, or state reason for the 
omission in the column not used. 

In cases where gauging with the rod is permitted the “ Wine- 
Gallons Capacity,” “ Wantage,” and “ Correction of Volume ” will be 
entered in columns 1, 2, and 3, respectively. 

Unless otherwise directed, no entry will be required in these col¬ 
umns when the inspection is by weighing. 

In column 4 shall be entered the “ Indication ” of the hydrometer 
stem; in column 5 the “ Temperature ” of the spirits, and in column 7 
the true “ Proof ” of the spirits resulting therefrom. 

In columns 6 and 8 shall be entered the “ Net Wine Gallons Con¬ 
tents ” and the “ Proof Gallons Contents ” of each package, respec¬ 
tively. 

When spirits are gauged which contain saccharine matter or other 
material to such an extent that no indication is shown on the hydrom¬ 
eter stem, they will be regarded as “ No Proof ” spirits. 

When an incorrect indication is shown by the stem and the pres¬ 
ence of saccharine matter in large proportions is unmistakably ap¬ 
parent, the spirits will be considered as “Apparent Proof.” 

Spirits marked and sold as whisky, rum, gin, brandy, etc., even 
though they contain a percentage of saccharine matter, will be treated 
precisely as unsweetened spirits. Their quantity will be ascertained 
by weighing and their proof will be marked and reported according 
to the actual reading of the hydrometer. Such cordials, liqueurs, 
and other compounds as are well known to contain a large proportion 
of saccharine matter will be gauged by the rod and reported as “ No 
Proof,” or “Apparent Proof,” as the case may require, but this pro¬ 
vision will be strictly confined to the artificial compounds, of which 
saccharine material is recognized as a large and necessary ingredient. 


105 


(a) Reporting sweetened spirits whose proof is known. 

Where a rectifier manufactures and puts up sweetened spirits, or 
where he compounds or blends sweetened spirits whose actual proof 
is known, he is required to employ a separate Form 237 for giving 
notice of the completion of the process of rectification; and in addi¬ 
tion to stating the number of packages and the wine gallons and 
actual proof gallons contained therein, he is also required to state 
the actual proof of the spirits at the end of the notice, over his signa¬ 
ture. In such cases the gauger who gauges the spirits after rectifica¬ 
tion will enter the wine gallons of each package in column 6 and the 
actual proof gallons in column 8 of the Form 237. In column 7 he 
will enter the actual proof preceded by the letters “Act. P.,” and in 
case the spirits have an “Apparent proof,” he will enter the apparent 
proof in column 9. The footing of column 6 will be carried to the 
regular account on record 39 and the footing of column 8 to the regu¬ 
lar account on both records 64 and 39, forming a credit to offset the 
unsweetened spirits, or the sweetened spirits whose proof was known, 
previously dumped for rectification. 

(b) Reporting sweetened spirits whose proof is not known. 

In giving notice of completion of the process of rectification of 
sweetened spirits whose proof is not known, the rectifier is required 
to employ a separate Form 237, on which he must state the number 
of packages, and also, as nearly as possible, the aggregate number of 
wine and proof gallons contents thereof. In such cases the gauger 
who gauges the spirits after rectification will enter the wine gallons 
of each package in column 6, the footing of which will be carried to 
the “Account of sweetened spirits ” on records 64 and 39 and there 
credited against the wine gallons already charged therein, and the 
rectifier will be permitted to stamp out spirits of this class to the 
extent of the balance of wine gallons previously dumped remaining 
to his credit. 

If the spirits so gauged are entitled under the regulations to be 
classed as “Apparent proof ” spirits, the gauger will enter the appar¬ 
ent proof in column 9 and the apparent proof gallons in column 10, 
and make no entries in columns 7 and 8. If the spirits are entitled 
to be classed as “ No proof ” spirits, the gauger will enter a cipher in 
column 7, and columns 8, 9, and 10 will be left blank. 

DETAILS OF RETURN, FORM 237. 

In column 11 on Form 237 the gauger will enter the serial number 
of the rectifier’s stamps affixed to the packages. 

Upon completion of the report the gauger will forward the same, 
in duplicate, to the collector, who will forward one copy to the Com- 


106 


missioner of Internal Revenue, inclosed in the rectifier’s return for 
the month on Form 45. 

The other copy will be held by the collector and filed with the 
retained copy of the return on Form 45. 

Gaugers are advised of their responsibility in the control of the 
stamps under cover of which the trade are enabled to put spirits 
upon the market, and cautioned as to the necessity of knowing that in 
their issues they are not made accessory to the sale and transfer of 
illicit spirits; and they, together with all revenue officers directly or 
indirectly connected with the affixing of stamps upon packages of 
spirits, are cautioned against affixing stamps upon packages which 
do not correctly represent the character of the contents, thereby lay¬ 
ing themselves liable to the fines and penalties of section 3316, Re¬ 
vised Statutes. (See instructions as to use of stamps for rectified 
spirits under “ Stamps for distilled spirits ” herein.) 

rectifiers’ monthly returns, form 45. 

Section 3317 as amended provides: 

That on or before the tenth day of each month every person en¬ 
gaged in rectifying or compounding distilled spirits shall make, in 
such form as may be prescribed by the Commissioner of Internal 
Revenue, a return to the collector of the district, showing the quantity 
of spirits received for rectification, and from whom received, the 
quantity dumped for rectification, the quantity rectified, the quantity 
removed after rectification during the preceding month, and giving 
such other information as may be required by the Commissioner of 
Internal Revenue, such return to be made in duplicate and sworn to 
by the rectifier; and the collector shall forward one of such returns 
to the Commissioner of Internal Revenue. 

The returns conveying this information will be made by rectifiers 
on Form 45, in duplicate, and under oath, to the collector on or before 
the 10th day of the month succeeding that for which the return is 
made. 

One of the returns, accompanied by the gauger’s returns of spirits 
gauged after rectification during the month at the rectifying house, 
on I orm 237, will, after examination, be at once forwarded by the 
collector to the Commissioner of Internal Revenue, and the other 
return, with duplicate copies of said gauger’s returns, will be retained 
and filed by the collector. The columns on the return, Form 45, are 
each to be filled with the total for the month, only one entry being 
necessary, except under the head of “ From whom received,”'as pro¬ 
vided below. 

Care will be taken to report in the columns for “ Wine gallons ” 
and “ Proof gallons ” the actual inspection in gallons and fraction 
of a gallon, as shown upon the package before dumping, or from the 
report of the gauger made after rectification, as the case may be. 


107 


Under the head “ From whom received ” each package must be 
reported separately; except when a number of packages are received 
from the same person or firm, the number of packages thus received, 
as well as the number of proof gallons, may be reported in the 
aggregate. 

The total number of “ packages ” and “ proof gallons ” received will 
be shown under this heading and entered in the corresponding col¬ 
umns under the head of u Received for rectification.” The number 
of u wine gallons ” as well as the proof gallons thus received will also 
be entered under the head of u Received for rectification.” The en¬ 
tries made under these headings should correspond with total quantity 
of spirits received for rectification during the month, as shown by the 
entries in the rectifier’s book, Form 52. 

The balance of spirits on hand in process of rectification on the 1st 
day of July of each year will be entered on the return given for that 
month, in a separate red-ink entry, under the head of “ Received for 
rectification.” 

Entries will be made under the head u Received for rectification ” 
entirely irrespective of those entered under “ Dumped for rectifica¬ 
tion,” and in both instances the actual transactions must be reported. 
The fact that spirits have been reported as “ Received for rectifica¬ 
tion ” does not preclude their being disposed of in the condition in 
which received, in which case the seeming discrepancy should be 
explained by required entries in book, Form 52. Where spirits are 
rectified which w r ere received by the rectifier in his capacity as whole¬ 
sale liquor dealer, the name of the person or firm from whom the same 
were originally purchased should appear in the column “ From whom 
received.” 

Under the head of “ Dumped for rectification ” will be entered the 
total number of packages, and their contents in wine gallons and 
proof gallons, emptied (constructively or otherwise) for rectification 
during the month, as showrn by the entries in the notices, on Form 122, 
given by the rectifier during the corresponding period. 

In all instances the spirits will be returned as dumped, on Form 45, 
for the month in which they were actually emptied, as appears from 
the gauger’s certificate on the several notices, on Form 122. 

The wine gallons and proof gallons of the unsweetened spirits or 
sweetened spirits whose proof is known and the wine gallons of the 
sweetened spirits of unknown proof dumped for rectification will be 
entered in the appropriate columns. 

Entries in the several columns under the head of “ Spirits rectified,” 
on Form 45, will be made from the data contained in the respective 
returns of the gauger, on Form 237, as follows: 

Under the head “ Packages ” enter the total number of packages of 
'spirits rectified during the month. 


108 


Under the head “ Unsweetened spirits or sweetened spirits of 
known proof ” enter the wine gallons and proof gallons, respectively, 
of all spirits rectified which are entitled to be classified as unsweetened, 
as well as the wine and proof gallons of all sweetened spirits rectified 
whose proof is known. 

Under the head “ Sweetened spirits, proof unknown,” enter the 
wine gallons of all sweetened spirits rectified whose proof is not 
known. , 

Spirits are not to be reported as rectified until they have been put 
up in packages and gauged, and rectifier’s stamps affixed. 

In the spaces on the lines showing “ Quantity of spirits dumped 
for rectification since ” and “ Quantity of spirits rectified since ” 
must be entered the first day of the month in which business was 
commenced under present special-tax payment, except in case of a 
change in the ownership of the business, when the date of the succes¬ 
sion will be entered in said spaces. 

The total quantity of spirits dumped and rectified since such date 
will also be stated in the appropriate columns on said lines, care being 
observed to increase the quantities thus reported from month to 
month to the exact extent shown by the entries under the head of 
“ Dumped for rectification,” and in the summary of spirits rectified, 
respectively. 

Upon discontinuance of business the last return will be marked 
“ Final.” 

Where there is a change in the ownership, the last return of the 
retiring proprietor will also be marked “ Final,” with the further 
statement, “ Succeeded by-,” giving here the name of the suc¬ 

cessor. 

The first return of a rectifier will be marked “ First return,” and, 
in case of a succession, the name of the predecessor will be indicated 
on the face of the return. 

The return when rendered by an individual must be signed by the 
rectifier in person, unless he is temporarily absent or sick, when it 
may be signed in his name by his authorized agent or attorney. In 
case of a firm the signature must be made in the firm name by a 
member of the firm as shown on the notice, 27B, or in case of tempo¬ 
rary absence or sickness of all the members, by some person duly 
authorized, as above. 

In case of a corporation, the signature will be made in the name 
and under the seal of the corporation, by the proper officer thereof, 
whose name and title are shown on Form 27B. 

The return must be verified by some person competent to sign the 
same, as above indicated. 



109 


RECORD 64. 

Record 64 will be used at all rectifying establishments for record¬ 
ing the transactions thereat. 

Collectors will see that true and exact entries are made in this 
record, as herein directed, so that it will at all times indicate the 
quantity of spirits in proof gallons (or in wine gallons in a proper 
case) which the rectifier is entitled to have gauged and stamped. 

The first entry made in the record, under these regulations, will be 
the balance standing to the rectifier’s credit as shown by the collector’s 
account, Record 39, verified by actual inventory to be made for this 
especial purpose. This entry will be made in column 6 of the record 
by the proper deputy collector, under whose supervision the inven¬ 
tory will be made, who will place the date of such entry and his sig¬ 
nature in columns 7 and 8. 

Every gauger making return on Form 122, of unsweetened spirits, 
or of sweetened spirits whose proof is known, gauged for rectification, 
will immediately, upon completion of such gauge, enter in column 1 
in this record the date of such gauge. In column 2 he will enter the 
aggregate of the column of “ Proof gallons contents ” under “ Return 
of spirits gauged ” on said Form 122, and will write his initials in 
column 3. 

Whenever the gauger gauges and stamps unsweetened spirits or 
sweetened spirits whose proof is known after rectification, he will at 
once enter in column 4 of said record the date of his return, on Form 
237; in column 5, the aggregate number of actual proof gallons gauged, 
and in column 6 the balance, in proof gallons, then standing to the 
rectifier’s credit. This balance will be the difference between the num¬ 
ber of proof gallons of spirits gauged for rectification, as shown in 
column 2 of the record, and the number of proof gallons of rectified 
spirits gauged and stamped, as exhibited in column 5, due allowance 
being made for the quantity entered as standing to rectifier’s credit, 
on opening the record, as above provided. For instruction as to action 
in case of excess of spirits, see page 111 herein. 

Sweetened spirits whose proof is not known will be entered, both 
when dumped for rectification and when gauged after rectification, in 
a separate account on Record 64, suitable space being set aside for 
that purpose, and headed “Account of sweetened spirits.” In such 
cases the footing of column 6, on Form 237, representing the wine gal¬ 
lons gauged after rectification, will be carried to the “Account of 
sweetened spirits,” and there credited against the wine gallons already 
charged therein, and the rectifier will be permitted to stamp out spir¬ 
its of this class to the extent of the balance of wine gallons previously 
dumped remaining to his credit in this account. As the entries in 
this separate account will represent wine gallons only, it will be neces- 


110 


sary to replace the word “ proof,” wherever it occurs in the heading 
of the page, with the word “ wine,” so that column 2, for example, 
will read “ No. of wine gallons.” 

Eecord 64 will be retained at the rectifying house, and entries 
therein will be in ink, and gaugers will see that the same are made to 
date in all instances. 

The collector will require the deputy collector in charge of the divi¬ 
sion to verify the accuracy of the said balance at least semimonthly, 
and at the same time to enter in column 7 on the record the date of 
verification, and in column 8 his signature. Where like verification 
is made by an internal-revenue agent he will also place his signature 
and the date in said columns 7 and 8. 

If errors are made in the entries on the record they must not be 
erased, but will be corrected in red ink, opposite to which correction, 
in columns 7 and 8; the deputy collector will enter the words “ Correc¬ 
tion proper,” and attach his signature and the date as above. 

Eecord 64 is not intended to supersede the collector’s account with 
the rectifier—Eecord 39—which latter will be kept as heretofore and 
the balance thereon compared with that on Eecord 64 at least semi¬ 
monthly. 

Form of Record No. 6Jf. 


Returns on Form 122. 

Returns on Form 237. 

Balance of 
proof gal¬ 
lons. 

When and by whom 
examined. 

Date. 

No. of proof 
gallons. 

Initials of 
gauger. 

Date. 

No. of proof 
gallons. 

Date. 

Name of 
officer. 

1 . 

2. 

3. 

4. 

5. 

6. 

7. 

8. 










collector’s record of rectifying business, book form 39. 

Collectors must keep an exact account with each rectifier, on Form 
39, in such manner as to be constantly advised as to the state of his 
business, and should exercise such supervision over the issue of stamps 
for rectified spirits as will prevent fraud in their use. 

The issue of stamps to any rectifier in excess of the proof gallons 
dumped, according to the notice on file, without investigation and 
action, as provided below, will be regarded as a grave neglect of duty. 

The entries in Eecord 39 are to be made daily—those under the head 
of “ Dumped for rectification,” with the exception of columns 11 and 
12, being transcribed from the rectifier’s notice, Form 122, and those 
under the head of “ Spirits rectified,” with the exception of columns 
19 and 20, from the gauger’s return, Form 237. 

The wine gallons and proof gallons of unsweetened spirits or of 
sweetened spirits whose proof is known, when dumped for rectifica- 
















Ill 


tion, will be entered in columns 5 and 6, respectively, and the wine 
gallons and proof gallons of this class of spirits, when rectified, will 
be entered in columns 15 and 16, respectively. The entries represent¬ 
ing the wine gallons of sweetened spirits whose proof is not known, 
comprising the “Account of sweetened spirits,” referred to on page 109 
herein, will be made in columns 7 and 17, thus obviating the necessity 
of opening a separate account on another page with rectifiers who 
handle this class of spirits. 

The aggregate of proof gallons of unsweetened spirits, or sweetened 
spirits whose proof is known, dumped for rectification, will be entered 
in column 11, and the aggregate of wine gallons of sweetened spirits 
whose proof is not known, dumped for rectification, will be entered in 
column 12. The aggregate of proof gallons rectified of the class of 
spirits first above mentioned will be entered in column 19, and the 
aggregate of wine gallons rectified of the class of spirits last above 
mentioned will be entered in column 20. A balance in each of these 
accounts should be made at least monthly and carried over from 
month to month. 

The accuracy of such balance will be verified from time to time by 
an actual inventory of the stock on hand at rectifying establishments. 
It is also expected that collectors will verify the entries contained in 
the rectifier’s monthly return, on Form 45, by comparing the same 
with the aggregate of like items in this book for the given month. 

If the monthly balance should show an excess of proof gallons rec¬ 
tified over the quantity reported as emptied for rectification, collect¬ 
ors will promptly and fully investigate the matter, cause an actual 
and careful inventory to be taken of the stock on hand, and, if thus 
satisfied that the known excess is due to legitimate causes, they may 
issue stamps covering the quantity of spirits returned by the rectifier. 

In case, however, the excess is greater than explicable by the ordi¬ 
nary course of business, and a due compliance with the law and reg¬ 
ulations, a copy of the account with the rectifier covering the period 
during which the surplus accumulated, showing the actual excess 
found by inventory, together with an affidavit of the rectifier as to the 
cause of the excess, will at once be forwarded to the Commissioner of 
Internal Kevenue, for instructions, accompanied by the collector’s 
recommendation based upon the required investigation. 

STAMPS FOR DISTILLED SPIRITS. 

Under the provisions of sections 3287, 3295, 3320, and 3330, Kevised 
Statutes, the legislative appropriation act of August 15, 1876, the acts 
of March 3, 1877, March 1, 1879, October 1,1890, and August 28, 1894, 
stamps for distilled spirits have been prepared and are now in use 
as follows: 


112 


Distillery warehouse stamps, to be used on all original packages of 
distilled spirits produced at registered grain and molasses distilleries 
(sec. 3287). 

Special bonded warehouse stamps and re warehousing stamps, to be 
used on original packages of brandy deposited in special bonded 
warehouses under the acts of March 3, 1877, and act of October 18, 
1888 (secs. 3 and 5, act of March 3, 1877). 

General bonded warehouse stamps for removal of distilled spirits, 
made from materials other than fruit, from a distillery warehouse to 
a general bonded warehouse, and general bonded warehouse retrans¬ 
fer stamps for removal of spirits from a general bonded warehouse to 
another general bonded warehouse (secs. 53 and 55, act of August 28, 
1894). 

Export stamps to be used on packages of spirits withdrawn from 
warehouse for exportation in bond (sec. 3330). 

Transfer stamps for grape brandy to be used in fortifying wines 
(sec. 45, act of October 1, 1890). 

Tax-paid stamps of denominations from 10 gallons to 130 gallons, 
to be used on original packages of spirits of all kinds (sec. 3295). 

Stamps for rectified spirits, to be used only on packages containing 
rectified spirits subjected to the process of rectification as defined by 
section 3244, Revised Statutes (sec. 3320). 

Wholesale liquor dealers’ stamps to be used upon packages filled 
from other packages by wholesale liquor dealers (legislative and 
appropriation act of August 15, 1876; also act of July 16, 1892). 

Stamps for imported spirits, to be used on packages of imported 
distilled spirits filled for shipment, sale, or delivery on the premises 
of any wholesale liquor dealer (sec. 11, act of March 1, 1879). 

Case and bottle strip stamps for distilled spirits bottled in bond, 
domestic and exportation (act of March 3, 1897). 

Stamps for denatured alcohol (act of June 7, 1906, and amenda¬ 
tory act of March 3, 1907). 

The stamps are engraved and bound in book form, the books of 
tax-paid stamps containing 150 stamps each; rectified-spirit stamps, 
100 each; wholesale liquor dealers’ stamps and stamps for imported 
spirits, 300 each; distillery warehouse, exportation stamps, special 
stamps for warehousing and rewarehousing brandy, 400 each; gen¬ 
eral bonded warehouse, general bonded warehouse retransfer stamps, 
and stamps for denatured alcohol, 200 each; case stamps, 20 in a 
book, each stamp having the necessary bottle strip stamps attached. 

The tax-paid stamps are for 10, 20, 30, 40, 50, 60, 70, 80, 90, 100, 
110, 120, and 130 gallons, with nine coupons attached, each coupon 
representing 1 gallon, and also nine coupons representing one-tenth 
of 1 gallon each. 

Rectifiers’ and wholesale liquor dealers’ stamps and the stamps for 
imported spirits and for denatured alcohol are for 5, 10, 20, 30, 40, 


113 


50, GO, 70, 80, 90, 100, 110, 120, and 130 gallons, with four coupons, 
representing 1 gallon each, attached to the 5-gallon stamp, and nine 
coupons, representing 1 gallon each, attached to stamps of all other 
denominations. 

Books of case stamps contain 20 stamps each of the denominations 
of 2/ ¥ and 3 gallons, respectively, with bottle strip stamps attached 
of the denomination of ^ pint, £ pint, \ pint, 1 pint, £ gallon, 1 
quart, or \ gallon, as required. 

All tax-paid, rectifiers’, wholesale liquor dealers’, and export 
stamps, and stamps for imported spirits, and for transfer of grape 
brandy are issued with a slip of paper affixed to the back of each 
stamp. 

HAVING A MONEY VALUE. 

Of the above stamps, tax-paid, exportation, and case stamps only 
have a money value—tax-paid, $1.10 per gallon (act August 28, 
1894), and exportation 10 cents each (act March 1, 1879), or 5 cents 
each (act of February 21, 1899). 

The sum of 10 cents for each package to which an export stamp 
shall be affixed will be paid to the collector on making the entry for 
transportation, except that where distilled spirits contained in metal¬ 
lic cans are put up in wooden packages or cases for export, under the 
act of February 21, 1899, the charge for each stamp is 5 cents. 

Case stamps 10 cents each. 

REQUISITIONS-HOW MADE. 

These stamps will be issued to collectors upon their requisitions 
made as follows: 

Tax paid and exportation on Form 139. 

Distillery warehouse, special warehouse, rewarehouse, general 
bonded warehouse, and general bonded warehouse retransfer on 
Form 175. 

Transfer grape brandy on Form 262. 

Rectified spirits on Form 139J. 

Wholesale liquor dealers’ on Form 127. 

Stamps for imported spirits on Form 160. 

Case stamps for distilled spirits bottled in bond on Form 402. 

Stamps for denatured alcohol on Form 557. 

COLLECTORS’ MONTHLY REPORTS OF SPIRIT STAMPS-HOW MADE. 

Tax paid and exportation on Form 90. 

Distillery warehouse, special warehouse, rewarehousing, general 
bonded warehouse, general bonded warehouse retransfer, rectifiers’, 
wholesale liquor dealers’, and for imported spirits on Form 177. 

56815—08-8 


114 


Case stamps for distilled spirits bottled in bond on Form 401. 

Stamps for denatured alcohol on Form 555. 

Full instructions as to the preparation of the above reports are 
printed on the back of each form. 

SIGNING OF STAMPS. 

Facsimile signatures of collectors may be affixed by the use of hand 
stamps to all stamps in which a space is provided for the signature of 
the collector, care being taken to use only such ink as will neither 
fade nor blur. The signatures of gaugers and storekeepers where 
required on stamps must be written by themselves with pen and ink. 

STUBS OF STAMPS. 

Section 3312 provides “ that there shall be entered on each stub 
such memoranda of the contents of its corresponding stamp as shall 
be necessary to preserve a perfect record of the use of such stamp 
when detached.” It is of the utmost importance that all stubs shall 
be accurately and legibly filled, so that a perfect record of the use of 
the stamp may be preserved. 

The attention of collectors is especially called to the foregoing re¬ 
quirement. Failure to comply therewith retards the business of this 
office, delays settlements of accounts of collectors, and necessitates a 
large amount of correspondence that might otherwise be avoided. 

USE or THE WORD “ SAME ” ON STUBS OF STAMPS ISSUED IN CONSECUTIVE 
ORDER ON THE SAME DATE TO THE SAME PERSON OR FIRM. 

When a number of stamps are issued in consecutive order on the 
same date to the same person or firm, the complete record of the first 
and last stamps must appear upon the first and last stubs, respectively. 

Upon each intervening stub the word “ Same ” may be used, either 
written or stamped, to cover so much of the record as is identical with 
that on the first of the stubs. The balance of such record not covered 
by the word “ Same” such as serial numbers of casks, contents, etc., 
should be inserted in the proper places in each stub. 

RETURN OF BOOKS TO COMMISSIONER. 

When all the stamps contained in any book shall have been issued, 
the collector will return the book, with all the marginal stubs therein, 
to this office. The stubs must in no case be removed from any of the 
books, and all unused coupons must remain attached to the marginal 
stubs. No coupon will be of any value when detached from the stamp 
or stub. Coupons erroneously detached may be reattached to the stub, 


115 


and must be accompanied by the prescribed affidavits, Form 82. (See 
Regulations, No. 2, revised July 1, 1908.) 

DUPLICATE STAMPS FOR PACKAGES OF SPIRITS FROM WHICH STAMPS HAVE 
BEEN LOST OR DESTROYED. 

Section 8315, Revised Statutes, authorizes the Commissioner of In¬ 
ternal Revenue, under such regulations as he may prescribe, with the 
approval of the Secretary of the Treasury, to issue stamps for re¬ 
stamping packages of distilled spirits which have been duly stamped, 
but from which the stamps have been lost or destroyed by unavoida¬ 
ble accident. 

APPLICATIONS FOR RESTAMPING. 

(1) Applications. —Persons desiring to have packages restamped 
will make application in writing to the collector of internal revenue 
for the district in which the same are situated, stating the number of 
packages, the articles contained therein, where they are located, and 
the nature of the applicant’s interest in them. 

(2) Evidence required. —The application should be accompanied by 
evidence that the articles were once properly stamped. If the stamps 
were lost or destroyed while in transit, the evidence should consist of 
the affidavit of the consignor that the packages were properly stamped 
when shipped and the affidavit of some one having knowledge of the 
facts as to the circumstances attending the destruction en route; if 
lost or destroyed after they came into the possession of the applicant, 
his own affidavit, or that of some one in his employ cognizant of the 
facts, that the packages were properly stamped when received, and, 
that the loss or destruction of the stamps was unavoidable—from 
accident or otherwise—all the attending circumstances being shown. 

(3) Inspection of packages. —On receipt of the application and evi¬ 
dence, the collector will order an immediate inspection of the pack¬ 
ages. If they contain spirits other than denatured alcohol, the inspec¬ 
tion should be made by a gauger, when possible, otherwise by a deputy 
collector, who will at the same time regauge them. If they contain 
other articles the inspection should be made by a deputy collector. 

(4) Report of inspection .—The inspecting officer will make a writ¬ 
ten report to the collector of the number of packages which require 
restamping, of the condition and contents of each, and of the stamps 
or fragments of stamps remaining attached, if any. 

(5) In the case of spirits other than denatured alcohol, a full report 
of the regauge and also of the marks and brands found upon the bung 
stave and stamp head of the package should be made to the collector, 
who will cause the same to be transmitted on Form 59, with the offi¬ 
cer’s report of inspection. 


116 


(6) Presentation of case .—The collector will forward to this office 
the evidence herein required, with his certificate as to the correctness 
of the same and his recommendation in the premises. In addition 
thereto he will submit— 

(7) In the case of distillery-warehouse stamps, a certified copy of 
the report on Form 59 of the original inspection of the spirits. 

(8) In the case of tax-paid spirit stamps, a certified copy of the re¬ 
port on Form 59 of the inspection of the spirits upon which the tax 
was paid; and 

(9) The certificate of the collector in whose district the spirits were 
produced as to the payment of the tax thereon. 

(10) In the case of stamps for imported spirits, export stamps for 
distilled spirits, and special warehousing and rewarehousing stamps 
for grape brandy, a certified copy of the report of the gauger who 
affixed the stamps. 

(11) In the case of wholesale liquor dealers’ stamps, a certified copy 
of the application (on Form 92 or 92J) for the stamps. 

(12) In the case of rectified spirits, a certified copy of the report of 
the gauger who affixed the stamps. 

(13) In the case of original packages of denatured alcohol, a certi¬ 
fied copy of the report, Form 577, of the gauger who affixed the 
stamps. Only so much of the report, Form 577, as relates to the 
packages to be restamped need be copied and furnished. 

(14) In the case of packages of denatured alcohol filled on the 
premises of a wholesale dealer, a certified copy of the application, 
Form 92 or 92J, as the case may be, for the stamp or stamps. 

USE OF STAMPS. 

DISTILLERY-WAREHOUSE STAMPS. 

The law (sections 3267 and 3287, as amended) imperatively re¬ 
quires that all spirits produced from any material other than the 
fruits specified in section 3255, Revised Statutes, as amended (p. 204 
herein), shall be drawn from the receiving cistern at least once in 
three days into casks or packages containing not less than 10 wine 
gallons each, be gauged, proved, and marked, and shall be immedi¬ 
ately deposited in the distillery warehouse and have the distillery - 
warehouse stamp affixed to each cask. The gauger will mark the 
casks as required, and affix the appropriate stamp to each cask. If 
the book of stamps is not in possession of the gauger, the collector or 
deputy collector will issue the stamps upon the report of the gauger, 
in detail, of his inspection, keeping an account of the number of 
stamps so furnished to each distiller. 

The distillery-warehouse stamp must be signed by the storekeeper 
and gauger, and have written thereon the number of proof gallons 


117 


contained in the package, the name of the distiller, the date of the 
receipt in warehouse, and the serial number of each cask. 

General and special bonded-w T arehouse stamps must be signed by 
the gauger and have written thereon the name of the distiller, number 
of the district, number of the warehouse, serial number of cask, and 
the contents in proof gallons. 

The rewarehousing stamp must be signed by the storekeeper and 
gauger and have written thereon the serial number of cask, the con¬ 
tents in proof gallons, the name of the distiller, the number of the 
district, the number of the bonded warehouse from which the package 
was withdrawn, and the number of the bonded warehouse into which 
it is entered. 

(For regulations governing the warehousing of metallic cans in¬ 
closed in wooden packages for export, see Regulations No. 29.) 

TAX-PAID STAMPS. 

Whenever any person desires to withdraw spirits from a warehouse 
on payment of tax he will notify the collector or deputy collector, who 
will, upon receipt of the tax, cut from the book stamps with the 
requisite coupons annexed properly filled up and signed. Before 
being withdrawn from warehouse, the tax-paid stamp must be affixed 
by the gauger in the presence of the storekeeper, and said stamps 
must remain upon such casks or packages until the spirits therein 
are emptied or drawn off. When emptied or drawn off, the ware¬ 
house and tax-paid stamps, with the other marks and brands, must 
be effaced and destroyed, as required by section 3324, Revised 
Statutes. 

The tax-paid stamp, in addition to bearing the signature of the col¬ 
lector, as provided herein, must be signed by the storekeeper and 
gauger, and shall have written thereon the date of payment of the 
tax, by whom paid, the number of gallons and tenths of gallons of 
proof spirit, serial number of cask, location of warehouse, and the 
name of the person to whom the same is to be delivered. 

The number of taxable gallons and tenths of gallons should be 
entered in the body of the stamp. 

INSTRUCTIONS AS TO DETACHING STAMPS AND COUPONS FOR GALLONS AND 
FOR TENTHS OF A GALLON. 

Attached to each stamp are 9 coupons representing 1 gallon each, 
and in addition thereto and printed in a column on the left of the 
1-gallon coupons, and divided therefrom by a line, are 9 coupons rep¬ 
resenting one-tenth of 1 gallon each. 

To detach a stamp with coupons for gallons and for tenths of gal¬ 
lons in such a manner that the stamp and all the coupons required 


118 


shall be obtained in one piece, the following instructions should be 
observed: 

For the gallon coupons, cut across from right to left to the line 
dividing the gallon coupons from the tenth gallons, continuing up or 
down said line to a point where, by cutting to the left, the one-tenth 
gallon coupons needed will be secured. 

This rule will apply to the obtaining of any number of gallon cou¬ 
pons without tenths, or tenths without gallons, or any combination 
of tenths and gallons in one piece with the stamp. 

The original casks or packages of a distiller, after removal from 
distillery warehouse, must, therefore, bear the distillery-warehouse 
and tax-paid or warehouse and export stamps, except when alcohol 
has been withdrawn for scientific purposes, or any distilled spirits 
for the use of the United States, or for the manufacture of sugar from 
sorghum, free of tax. 

The absence of these stamps is evidence that the tax'was not paid, 
or that there has been a change of package, and the cask in such 
latter case, if containing 5 or more gallons wine measure, must bear 
the rectifiers’ or the wholesale liquor dealers’ stamp, as the case may 
be, and be marked as hereinafter provided. 

So long as the original package remains unchanged and bears the 
distillery-warehouse and tax-paid stamps, and is not intended for 
export, no other stamp is required. 

All spirits produced by distillers of the fruits specified in section 
3255, Revised Statutes, as amended (p. 204 herein), exclusively, are 
required to be drawn into casks of not less than 10 wine gallons’ 
capacity, and to be retained at the designated place of deposit at the 
distillery until the tax is paid thereon and the tax-paid stamp is at¬ 
tached thereto, except when removed in bond from the place of man¬ 
ufacture to a special bonded warehouse without payment of tax under 
the provisions of the acts of March 3, 1877, and October 18, 1888. 

The marks, brands, and stamps must be effaced and obliterated on 
emptying, as in the case of other distillers’ packages. 

EXPORT STAMPS. 

When the owner of distilled spirits desires to remove the same from 
a distillery warehouse for exportation under a transportation bond, he 
will give notice of his intention to the collector of the district in which 
the distillery warehouse containing the spirits is situated, who will 
thereupon detail a gauger and deliver to him an order in triplicate to 
inspect and gauge the spirits and affix to each package the proper 
export stamp. It will be the duty of such gauger to gauge each pack¬ 
age of spirits and make a report to the collector. 

The gauger will carefully and thoroughly ‘inspect each package, 
ascertaining the actual wantage, proof, and contents, without refer- 


119 


ence to the marks on the casks. He will report the date of the pro¬ 
duction of the spirits and the amount contained in the packages when 
entered into warehouse. In every case he will see that the export 
stamp is affixed to each package and properly canceled before the 
spirits are withdrawn. 

The export stamp must be signed by the gauger, and there must be 
written thereon the date when and the name of the person to whom 
issued, the serial number of the cask, and number of proof gallons. 

STAMPING IMPORTED SPIRITS. 

Section 11 of the act entitled “An act to amend the laws relating to 
internal revenue,” approved March 1, 1879, provides as follows: 

That all distilled spirits, wines, and malt liquors imported in pipes, 
hogsheads, tierces, barrels, casks, or other similar packages, shall be 
first placed in public store or bonded warehouse, and shall not be 
removed therefrom until the same shall have been inspected, marked, 
and branded by a United States customs gauger, and a stamp affixed 
to each package, indicating the date and particulars of such inspec¬ 
tion; and the Secretary of the Treasury is hereby authorized to pre¬ 
scribe the form of, and provide the requisite stamps, and to make all 
regulations which he may deem necessary and proper for carrying the 
foregoing requirements into effect. 

In accordance with this law, the Secretary of the Treasury has 
issued to collectors and other officers of the customs the following 
instructions, viz: 

To carry into effect the above provisions, stamps with stubs have 
been prepared by the Department, and will be supplied, in book form, 
upon requisitions of collectors, in such numbers as may be required. 
Collectors will cause the blanks provided in the stamps to be filled up 
by inserting the date when issued (and in the case of distilled spirits 
the number of the bond), the port of importation, the name of the 
vessel and date of arrival, the number or wine gallons, and, in the 
case of spirits, also that of proof gallons contained in the package, 
and the commercial name of the wine or liquor contained therein; and 
the stamp will be signed by the gauger who may inspect the package 
as hereinafter provided. 

Before the removal from the custody of the officers of the customs 
of any package of imported spirits, wines, or malt liquors, the collector 
or surveyor will detail a United States customs gauger, and this officer 
will make a careful gauge of the package, and will cut upon the bung 
stave the number of wine gallons, and, in the case of spirits, the proof, 
outage, and number of proof gallons, and will also cut or mark upon 
the head of the package, in letters at least one-half inch in length, the 
date of inspection, the serial number of the stamp to be affixed, and 
the name of the spirits, wines, or malt liquors contained therein, as 
known to the trade, and a report of such gauge shall be made under 
the provisions of the general customs regulations. 

Each package must be gauged and inspected separately, without 
regard to marks and brands already on such package, and fractions of 
gallons will be marked as provided in the regulations referred to. 


120 


The gauger will affix the stamps, and in attaching them will take 
care to guard against their cracking and peeling off. Collectors of 
customs will be guided by their own judgment in regard to requiring 
the goods to be carted to public store or bonded warehouse for the 
mere purpose of inspection and stamping, and where, in their judg¬ 
ment, such inspection, stamping, etc., can as well be done at the place 
of landing, they may permit that course to be taken. Each stamp 
must be canceled immediately upon affixing, by means of a stencil 
plate having five parallel waved lines, which must be long enough to 
extend one inch beyond each end of the stamp on the wood of the cask. 
A coating of transparent varnish or other suitable substance should 
be applied to protect and preserve the stamp after it has been affixed 
and canceled. 

STAMPING REIMPORTED SPIRITS. 

Reimported domestic spirits are required to be stamped with stamps 
printed in green, provided for such imported spirits. 

While the retention of internal-revenue marks and stamps upon 
packages of reimported spirits is not expressly required by any pro¬ 
vision of law, such retention is commanded by the interests of both 
the Government and the importer. 

(For instructions regarding the stamping of imported spirits by 
wholesale liquor dealers, see regulations herein under the heading 
“ Wholesale liquor dealers’ stamps.”) 

STAMPS FOR FRUIT BRANDY. 

All spirits produced by distillers of the fruits specified in section 
3255, Revised Statutes, as amended (p. 204 herein), exclusively, are 
required to be drawn into casks of not less than 10 wine gallons’ 
capacity, and to be retained at the designated place of deposit at the 
distillery until the tax is paid thereon and the tax-paid stamp is 
attached thereto, except when removed in bond from the place of 
manufacture to a special bonded warehouse without payment of tax, 
under the provisions of the acts of March 3, 1877, and October 
18, 1888. 

The original packages of this class of distillers must, therefore, bear 
the tax-paid stamp, the special bonded-warehouse stamp, the reware¬ 
housing stamp, or the transfer grape-brandy stamp. 

On payment of the tax upon the brandy remaining at the distillery, 
as shown in the gauger’s report, the collector shall prepare tax-paid 
stamps of the proper denomination,'with all the blanks filled up ac¬ 
cording to the facts appearing in such gauger’s return, including the 
serial number of the cask to which each stamp is to be attached, which 
stamps shall be signed by the collector, as well as by the gauger mak¬ 
ing the return, and delivered to the distiller. 

Upon the receipt from the collector of the tax-paid stamps, the dis¬ 
tiller shall affix the same to the casks in a secure and permanent man¬ 
ner, as herein directed. 


121 


STAMPS FOR RECTIFIED SPIRITS. 

Under the provisions of section 3320, Revised Statutes, as amended 
by the act of July 16, 1892, and section 66 of the act of August 28, 
1894, every package of rectified spirits filled for shipment, sale, or 
delivery, on the premises of any authorized rectifier, must be gauged, 
inspected, marked, and branded as hereinafter provided, and have 
affixed thereto the stamp for rectified spirits. 

In accordance with the said provisions, a rectifier’s stamp has been 
prescribed as follows: 

Stamp for rectified spirits , No. -. 

Issued by-, collector of the - district, State of 

-, to-, rectifier of spirits in the said collection dis¬ 
trict, -, 19—. -proof gallons,-wine gallons. 


United States Gauger. 

These stamps are bound in book form, each book containing 100 
stamps, only one denomination being contained in each book. 

The denominations are 5, 10, 20, 30, 40, 50, 60, 70, 80, 90, 100, 110, 
120, and 130 gallons, respectively, with nine coupons attached to 
each, and each coupon representing 1 gallon. 

In using the coupons on rectifiers’ stamps, if the fraction is less 
than 0.50 it is dropped, and if 0.50 or more it is called the unit 
above. Thus, if a cask contains 42.46 proof gallons, a 40-gallon stamp 
and two coupons will be used and 42.46 will be written in the body 
of the stamp. If the fraction were 0.52 three coupons would be used 
and 42.52 written in the stamp. 

When rectified spirits are below proof the wine gallons will be rep¬ 
resented by the stamp, and the appropriate coupons, observing the 
above rule in the treatment of fractions, and the true wine gallons 
and proof gallons will be written in the body of the stamp. 

(For instructions in regard to the entries to be made in the stamp 
when issued to cover sweetened spirits whose proof is known, or 
sweetened spirits whose proof is not known, see p. 181 herein.) 

Connected with each stamp is its corresponding stub, which the 
gauger will in all cases fill out in accordance with the facts in the case. 

It must be understood that the term “rectified spirits ” is herein 
used in its legal and not in the ordinary commercial signification of 
the term. Any person who purchases tax-paid spirits and redistills 
or compounds the same, or who purifies or refines such spirits by any 
process, is a rectifier as defined by law; and the spirits so redistilled, 
compounded, refined, or purified are rectified spirits, and must bear 








122 


the stamps for rectified spirits. The term “ rectifier,” as used in 
these regulations, includes every person who treats distilled spirits or 
wines by any of the processes the using of which would constitute him 
a rectifier as defined by section 3244, United States Revised Statutes. 

When a rectifier purchases spirits and proposes to subject them to 
any of the processes which would constitute him a rectifier, he must 
file with the collector the notice herein provided for; and upon empty¬ 
ing the casks he must efface and obliterate the stamps, marks, and 
brands upon such casks as provided. And when he puts spirits into 
casks, after completing his process, such casks must have affixed the 
stamp for rectified spirits, and this stamp must not be removed until 
the cask is emptied. 

The rectifier’s stamp must be signed by the gauger, who will enter 
thereon the date when affixed, the number of wine and proof gallons, 
the number of the district, and name of the rectifier. 

Rectifiers’ stamps must not be affixed to casks containing spirits 
which have not been rectified in the legal signification of the term as 
defined in the third paragraph of section 3244, Revised Statutes. 

When spirits are redistilled by a rectifier they must be covered by 
a rectifier’s stamp, but such stamp should not be issued and affixed 
to cover spirits which have simply been changed from one cask or 
package to another, or to which water only has been added. (See 
instructions herein as to the procurement of stamps for rectified 
spirits.) 

WHOLESALE LIQUOR DEALERS’ STAMPS. 

Any person who sells or offers for sale spirits in quantities of 5 
wine gallons and upward is a wholesale liquor dealer; and every cask 
or package of 5 gallons or more filled for shipment, sale, or delivery 
on the premises of any wholesale liquor dealer must have affixed 
thereto the wholesale liquor dealers’ stamp, and be marked as herein¬ 
after provided. 

Where a wholesale liquor dealer purchases packages of spirits 
properly marked, stamped, and branded, and sells them in the same 
condition, no other stamp or mark is required. 

A neglect or failure to comply with the requirements of sections 
3320 and 3323, Revised Statutes, as amended, so far as the latter 
relates to wholesale liquor dealers’ packages, renders the package of 
spirits liable to forfeiture. 

CHANGE OF PACKAGE BY WHOLESALE LIQUOR DEALERS. 

Section 3323, Revised Statutes, as amended by the act of July 16, 
1892, provides that— 

Every package of distilled spirits containing five wine gallons or 
more, filled on the premises of a wholesale liquor dealer, who has paid 
the special tax required by law, shall be marked, branded, and 


123 


stamped by such wholesale liquor dealer in such manner and under 
such rules and regulations as the Commissioner of Internal Revenue, 
with the approval of the Secretary of the Treasury, may prescribe. 

In accordance with the above provisions of law a wholesale liquor 
dealers’ stamp has been prescribed, as follows: 

UNITED STATES INTERNAL REVENUE. 

Wholesale liquor dealers' stamp. 

No.-. 

(Date:)-,-. 

Issued by-, collector - district, State of -, 

to-, wholesale liquor dealer, for-wine gallons taken 

from package No.-, filled by-, of the-district, 

State of-, bearing-stamp No.-. Original proof,- 

Present proof. -. 

-, Collector. 

STAMPING OF IMPORTED SPIRITS BY WHOLESALE LIQUOR DEALERS. 

Section 11, act of March 1, 1879, provides that— 

Whenever any cask or package of imported distilled spirits of not 
less than five wine gallons is filled for shipment, sale, or delivery on 
the premises of any wholesale liquor dealer, the same shall be stamped 
with a special stamp for imported spirits, under such rules and regu¬ 
lations as the Commissioner of Internal Revenue has prescribed, or 
may hereafter prescribe, in the case of domestic distilled spirits. 

In accordance with the above provision of law, an additional whole¬ 
sale liquor dealers’ stamp has been prescribed, as follows: 

Stamp for imported spirits. 

No.-. 

Issued-—, 19—, to-, wholesale liquor dealer 

at-, district of-, for-wine gallons imported 

spirits, taken from a package -by-, of the - 

district, State of-, bearing- stamp No. -. Original 

proof,-. Present proof,-. 


Collector - District of -. 

The stamp for imported spirits must be signed by the collector, 
and there must be inserted in the body of the same the date, the name 
of the wholesale liquor dealer to whom issued, the place of business, 
the number of wine gallons, whether imported or filled, and by whom, 
giving the number of the bond covering the spirits or the name of the 




























124 


wholesale liquor dealer, as the case may be, the district and State 
where he does business, the kind of stamp on the package from which 
the spirits are to be drawn, stating either stamp for imported liquors 
or stamp for imported spirits, the number of said stamp, the original 
proof, and present proof of the spirits. 

PROCUREMENT OF STAMPS BY WHOLESALE LIQUOR DEALERS. 

The services of gaugers at wholesale liquor dealers’ establishments 
for the purpose of gauging, stamping, and branding wholesale liquor 
dealers’ packages are not required, and stamps for packages contain¬ 
ing 5 wine gallons or more will be furnished to wholesale liquor 
dealers by the collectors of internal revenue on application being 
made therefor on prescribed Form 92 or 92J. 

In making application for a wholesale liquor dealers’ stamp or 
stamp for imported spirits, the -first application for a stamp to cover 
spirits to be drawn from any package must be accompanied by a piece 
of the stamp on the package, which must be cut therefrom in the 
manner prescribed in these regulations under the heading “ Rectifiers’ 
notice, Form 122.” 

In making application for the wholesale liquor dealers’ stamp for 
imported spirits, the first application for a stamp to cover the spirits 
to be drawn from any package must be accompanied by a piece of the 
stamp on the package, which must be cut therefrom in such a manner 
as to show the kind and serial number of the stamp, date of issue and 
number of the bond covering the spirits, the port from whence im¬ 
ported, the name of the vessel, the wine and proof gallons, the name 
of the collector, and the port where the stamp is issued. 

In case a sale is to be made of spirits from a cask or package bear¬ 
ing the “ stamp for imported spirits,” such stamp will be cut in such 
a manner as to show the kind and serial number of the stamp, date of 
issue and party to whom issued, the wine gallons, the kind of stamp 
and serial number of original stamp, original and present proof, and 
the name of the collector. 

In case a sale is to be made of spirits from a cask or package bear¬ 
ing the wholesale liquor dealers’ stamp, such stamp will be cut from 
top to bottom, between the words “ proof ” and “ collector,” which 
will be found near the bottom of the stamp, and the portion so cut 
must embrace the entire width between the said words. (See instruc¬ 
tions herein, under the head of “ Marking and stamping of packages 
of spirits filled on the premises of wholesale liquor dealers.”) 

The collector will preserve each application for wholesale liquor 
dealer’s stamp (Form 92 or 92|), and record the same daily in his rec¬ 
ord on Form 41, provided for that purpose. 

When the wholesale liquor dealer is located at a point where it is 
inconvenient to make application to the collector for the stamp, he 


125 


may make application to the nearest deputy collector, who is hereby 
authorized to receive such application, and to issue said stamp in the 
same manner as the collecter, preserving such application and record¬ 
ing it in a book to be kept by him for that purpose. 

Collectors are instructed to furnish wholesale liquor dealers with a 
proper supply of blank applications (Form 92 or 92J), and keep them 
supplied with the same. 

Wholesale liquor dealers will be held strictly responsible for the 
accuracy of the description in their application (Form 92 or 92^) of 
the stamp or stamps desired, and that the facts required to be stated 
therein are correctly stated. 

All persons are notified that the nonuse, misuse, or fraudulent use 
of these stamps renders the person so offending liable to the penalties 
prescribed in the internal-revenue laws relative to other stamps for 
distilled spirits. 

If, after selling a portion of the spirits from any cask or package, 
the dealer wishes to dispose of the balance remaining in the original 
package bearing the remnant of a stamp, he will be required to make 
another application for a stamp, or stamps, to cover such balance, 
either in such original package or other packages to which it may be 
changed; and if to be sold in the original package, the remnant of 
the stamp and all marks and brands shall be erased from said pack¬ 
age, as required by law and existing regulations. 

Where, however, the wholesale liquor dealer transfers to himself, 
as retail liquor dealer, on the same premises, packages of spirits from 
which a portion of the spirits has been sold, it is not required that the 
packages shall be restamped. 

In such cases the collector can complete his record, on Form 41, by 
availing himself of the data found in the required transcripts of the 
entries made in the dealer’s book, Form 52, which book must show in 
detail the spirits transferred as above. 

In no case shall dealers be allowed to sell the spirits remaining in a 
package bearing the remnant of a stamp, or remove the package with 
such spirits therein from their premises, unless such package is 
remarked and restamped with a wholesale liquor dealers’ stamp as 
directed herein. 

Should a rectifier wish to dump a package from which a portion of 
the spirits has been sold by him as a wholesale liquor dealer, he will 
make application on Form 92 for a stamp to cover the spirits remain¬ 
ing in the package, and attach said stamp as hereinbefore required. 

He will then transfer such package to himself as a rectifier, report¬ 
ing such transfer on his book (Form 52), after which the notice on 
Form 122 may be given in the usual manner. 

If, after a portion of the spirits has been sold from any cask or 
package, a wholesale dealer (who has paid special tax as a retail 


126 


liquor dealer) wishes to retail the balance on the same premises, he 
must transfer such balance to himself as a retail liquor dealer, and 
report such transfer on his book (Form 52). 

Under the provisions of the fourth paragraph of section 3244, 
Revised Statutes, packages containing less than 5 wine gallons of 
spirits can not be sold by wholesale liquor dealers, even though they 
contain more than 5 proof gallons. 

In order to prevent confusion where several sales are made from 
the same package, wholesale liquor dealers should keep a record of 
the applications on Form 92 for each package, giving date and quan¬ 
tity to be covered by the stamp asked for in each application. 

Collectors will see that record, Form 41, is so kept as to insure the 
issue of dealers’ stamps only to cover the quantity of spirits con¬ 
tained in the original package. 

MONTHLY RETURN BY WHOLESALE LIQUOR DEALERS. 

Section 3323, Revised Statutes, as amended by the act approved 
July 16, 1892, provides that— 

Every package of distilled spirits containing five wine gallons or 
more, filled on the premises of a wholesale liquor dealer who has 
paid the special tax required by law, shall be marked, branded, and 
stamped by such wholesale liquor dealer in such manner and under 
such rules and regulations as the Commissioner of Internal Revenue, 
with the approval of the Secretary of the Treasury, may prescribe; 
and on or before the tenth day of each month every wholesale liquor 
dealer shall make return, under oath, to the collector of internal 
revenue for the district of the various kinds and quantities of each 
kind and of the total quantities of distilled spirits received on his 
premises and of the various kinds and quantities of each kind and of 
the total quantity of distilled spirits sent out from his stock or posses¬ 
sion during the preceding month, and of the quantity of each kind 
and the total quantity remaining on hand at the end of the month; 
and such return shall be made in such form and contain such other 
particulars as the Commissioner of Internal Revenue, with the ap¬ 
proval of the Secretary of the Treasury, may prescribe. And every 
rectifier or wholesale liquor dealer who refuses or willfully neglects 
to comply with the requirements of this act as to giving the said 
notice or the said return, and as to marking, branding, and stamping, 
in accordance with the law and the regulations made in pursuance 
thereof, the packages of spirits filled on his premises as aforesaid, 
shall, for each such offense, be fined not less than two hundred dol¬ 
lars nor more than one thousand dollars. 

Pursuant to the above provisions, every wholesale liquor dealer 
shall, on or before the 10th day of each month, make return, under 
oath, on Form 338, which has been provided and is hereby prescribed 
for that purpose, to the collector of the district of the exact quantity, 
in proof gallons, of each kind of distilled spirits and the total quan¬ 
tity of all kinds of distilled spirits on hand at the beginning of and 


127 


received on his premises during the preceding month; and in like 
manner the exact quantity of each kind and the total quantity of all 
kinds sent out from his stock or possession during such month; and 
the quantity of each kind and the total quantity of distilled spirits of 
all kinds remaining on hand at the end of the month. 

In case of sweetened spirits whose actual proof is known the actual 
proof gallons will be returned. In case of sweetened spirits whose 
proof is not known the wine gallons thereof will be returned. 

The proof gallons of unsweetened spirits will be entered in all cases. 

To secure entire accuracy in this account, and in order that the 
balance may correctly represent the quantities on hand, it is required 
that at the close of the months of June and December in each year a 
full, true, and exact inventory shall be made by every wholesale liquor 
dealer of each kind of spirits and of all distilled spirits then on the 
premises, without regard to the date when such spirits were received. 

These returns, when received by the collector, shall be carefully filed 
in his office for reference, especially in connection with the monthly 
transcripts rendered from the wholesale liquor dealer’s book. 

In case of a wholesale liquor dealer who is also a rectifier, his re¬ 
turn on Form 338 must include all spirits received and disposed of 
by him, whether the same are rectified by him or not. 

The quantity “ Received during month ” will include all spirits 
that came on the premises and also all spirits “ Received from rectifi¬ 
cation ” (as entered on Form 52) under the various headings as to 
kinds of spirits. 

The quantity “ Sent out of stock during the month ’* will include all 
spirits disposed of by sale and also all “ Spirits emptied for rectifica¬ 
tion from stock received ” under the various headings. 

The entries “ On hand ” at beginning and end of month will not 
include spirits then in course of rectification and which have been 
duly entered on Form 52 as “ Emptied for rectification from stock 
received.” 

Whenever the dealer has imported spirits in custom bonded ware¬ 
house, the exact quantity of which is unknown to him, and conse¬ 
quently not entered on Form 52, it is not expected that the spirits will 
be taken up on Form 338 until the dealer is informed as to the actual 
quantity of the same. 

RETAIL LIQUOR DEALERS. 

Retail liquor dealers are authorized to sell in quantities less than 5 
gallons only, and no reinspection or stamping of the package of 
spirits so sold by them is required. 

The spirits which they purchase in packages of 5 or more wine gal¬ 
lons must be properly stamped, marked, or branded, and remain in 
the original casks or packages until drawn off for sale in retail 
packages. 


128 


There being no provision for stamping spirits on the premises of 
retail liquor dealers, they are not authorized to reduce the proof of 
spirits in wholesale quantities by the addition of water or otherwise. 

The reduction of spirits in the distiller’s original package to a proof 
not less than 90 per cent after same have left the distillery premises, 
as provided herein, must be performed on the premises of a wholesale 
liquor dealer, or at the distiller’s free warehouse. 

A change of package of spirits to prevent leakage, or for other 
cause, can be made by a retail liquor dealer in such manner as to pro¬ 
tect the spirits from detention or seizure only by transferring the 
same to vessels containing less than 5 wine gallons each. 

A retail liquor dealer can not legally sell several packages of the 
same kind of spirits at the same time, each containing less than 5 wine 
gallons, but which contain in the aggregate more than 5 gallons. 

GENERAL PROVISIONS REGARDING STAMPS USED BY RECTIFIERS AND WHOLE¬ 
SALE LIQUOR DEALERS. 

The attention of all officers of internal revenue is specially called to 
these instructions, as much confusion has risen in consequence of the 
indiscriminate use of the stamp for rectified spirits and the wholesale 
liquor dealers’ stamp. The use of the wholesale liquor dealers’ stamp 
upon the original packages of rectified spirits put up by a rectifier is 
improper, unless a constructive change of package is made, with entire 
change of marks and brands, and must not be allowed; and the term 
rectified spirits must not be limited to its old commercial sense, but 
must be construed to cover all spirits included in the statute definition. 

The provisions of section 3323, Revised Statutes, as amended by the 
act of July 16, 1892, so far as the latter relates to wholesale liquor 
dealers’ packages, apply to all cases where distilled spirits are drawn 
from any cask or package and placed in any other cask or package 
containing not less than 5 gallons and intended for sale, without re¬ 
gard to the person by whom, or the place where, such change is made; 
and the absence of the required marks or brands is declared to be suffi¬ 
cient cause of forfeiture. 

The absence of any stamp or brand required by law from any pack¬ 
age of spirits containing 5 gallons or more works a forfeiture of the 
package and contents. (See sec. 3289, Rev. Stat.) 

If any authorized rectifier fills any package with rectified spirits on 
his premises for shipment, sale, or delivery without causing the same 
to be gauged and stamped with the stamp for rectified spirits; or if 
any wholesale liquor dealer fills any cask or package of distilled spirits 
without causing the same to be stamped with the wholesale liquor 
dealers’ stamp, he becomes liable to the penalty imposed by section 
3323, Revised Statutes. 


129 


The local officers will be held responsible for the strict enforcement 
of all the provisions of the law in relation to this subject. 

STAMPING FORFEITED SPIRITS SOLD BY UNITED STATES MARSHALS. 

Under the provisions of section 3334, Revised Statutes, as amended 
by act of March 1, 1879, all distilled spirits forfeited to the United 
States, sold by order of court, whether condemned before or after the 
passage of the act, are to be sold subject to tax, and the purchaser 
must immediately, and before he takes possession of such spirits, pay 
the tax thereon. And if any tax-paid stamps are affixed to any cask 
or package so condemned, such stamps must be obliterated and 
destroyed by the collector or marshal after forfeiture and before such 
sale. 

The spirits so sold are subject to this tax without regard to the ques¬ 
tion whether or not any tax has been previously paid thereon. The 
tax to be paid is $1.10 per wine gallon when below proof, and per 
proof gallon when at or above proof; fractions of a gallon are to be 
retained to one decimal place and taxed at their full value. Where, 
however, by reason of the spirits being below proof they will not 
bring a price equal to the tax thereon, the tax may be paid on the 
proof gallons only. (See proviso of sec. 3334, Rev. Stat.) 

This is substantially a new tax accruing upon the sale of such 
spirits by the marshal, and is to be paid in the district where the sale 
is made, and is to be collected upon the quantity sold by the marshal. 

When, therefore, a sale is made by the marshal, he will require the 
purchaser, before receiving possession of the spirits, to deliver to him 
the receipt of the collector of the district in which the sale is made 
for the tax due upon the same, which receipt will be executed on 
Form 105. The purchaser, in order to obtain the receipt, will deliver 
to the collector a statement to be signed by the United States marshal, 
giving the number of packages, the number of wine and proof gallons 
in each, with the date of the sale and the name of the purchaser, and 
the collector will issue for every such cask or package a tax-paid 
stamp, and cause the same to be affixed thereto. Upon the face of 
the receipt, Form 105, the collector will indorse the words “ Tax-paid 
stamps issued,” and upon the stamps “ Tax on spirits sold by United 
States marshal,” with the date of the sale. 

Before the delivery of any spirits so sold to the purchaser the mar¬ 
shal will mark with a stencil plate, or brand with a branding iron, 
each cask or package with his name' and official title, together with 
the date and place of sale, and the words “ tax paid,” and the num¬ 
ber of proof gallons, with the name of the gauger who gauged the 
same, and the date of gauging. 

56815—08-9 


130 


No stamp, brand, or mark which may be upon the barrels at the 
time the spirits are condemned is to be removed or obliterated, except 
the tax-paid stamp, and the new tax-paid stamp and mark of the 
marshal should be so placed as not to cover or deface any of such 
stamps, marks, or brands. 

STAMPING FORFEITED SPIRITS SOLD BY COLLECTORS. 

When forfeited spirits are sold by collectors under section 3460, 
Revised Statutes, they must be sold subject to tax, as required by 
section 3334, Revised Statutes, and should be marked and branded in 
the same way as spirits sold by a marshal, with such change as may 
be required by the difference in title of the officer selling. 

Instructions as to the mode of procedure under section 3460, Revised 
Statutes, are given in the Regulations, No. 2, revised. 

In the case of forfeited spirits proceeded against under section 3460, 
Revised Statutes, which, when offered for sale, will not, by reason of 
being below proof or of inferior quality, bring a price equal to the tax 
thereon, computed only upon the proof gallons thereof, collectors will 
apply to this office for authority, under the last provision of section 
3450, Revised Statutes, to destroy the same. 

STAMPING SPIRITS SOLD ON DISTRAINT UNDER ORDER OF COURT OR UNDER 
SECTION 3460, REVISED STATUTES. 

Section 3334, Revised Statutes, as amended March 1, 1879, provides 
that, in cases where distilled spirits offered for sale on distraint for 
taxes, where the taxes on such spirits have not been paid, or offered 
for sale for the benefit of the United States as forfeited under order 
of court, or under proceedings pursuant to section 3460, Revised Stat¬ 
utes, will not, by reason of being below proof, bring a price equal to 
the tax due thereon, but will bring a price equal to or greater than 
the tax on said spirits if computed only upon the proof gallons con¬ 
tained in the packages, then, and in such case, upon sale being so 
made, tax-paid stamps to the amount required to stamp such spirits 
as if the tax thereon were only on the proof gallons, may be used by 
the collector making such sale, or furnished by the collector to the 
United States marshal or other officer making the sale for the benefit 
of the United States, without making payment for such stamps so 
used or delivered. 

The officer having charge or making sale of the spirits is required 
to affix the stamps securely to the package and to write across the 
face of each the true number of wine and proof gallons in the pack¬ 
age, the amount of tax paid, and the words “Affixed under the pro¬ 
visions of act of March 1, 1879.” 


131 


Before issuing stamps under the provisions of this section the col¬ 
lector will require of the officer having charge of the spirits an appli¬ 
cation for the stamps required. The application should be accom¬ 
panied by a statement, under oath, of the facts and circumstances 
attendant upon the case, the number of packages in which the spirits 
are contained, and the number of wine and proof gallons in each 
package. 

If the collector is satisfied from the statements submitted that the 
law has been complied with, he will issue the required stamps in 
blank, taking the officer’s receipt in duplicate therefor. The receipt 
should show the serial numbers, denominations, and value of the 
stamps. The collector should caution the officer to cause the stamps 
to be securely affixed, and to write across the face of each the true 
number of wine and proof gallons in the package, the amount of tax 
paid, and the words, “Affixed under provisions of act of March 1, 
1879.” He should also require the affidavit of the officer that the 
stamps were properly affixed. 

The application, the original “ receipt,” and the affidavits should be 
forwarded to this office, accompanied by the affidavit of the collector 
as to the issue of the stamps; and, if the evidence is satisfactory to 
the Commissioner, credit will be allowed the collector in his account. 

In the event of the sale being made by the collector, his affidavit, 
setting forth the facts, should be submitted. 

STAMPS INTRUSTED TO GAUGERS. 

Section 3314, Revised Statutes, as amended, authorizes collectors to 
intrust to gaugers books of stamps relating to distilled spirits, other 
than tax-paid stamps, whenever they may deem it necessary to do so, 
and they may require such gaugers to give security to return or 
account for all such stamps. Where such books are so intrusted to 
a gauger, he will be required to keep the same continuously in his 
immediate possession, and, when not in actual use, the book must be 
deposited in a safe and secure place, under lock and key, to which 
no one shall have access at any time except himself. 

Such gauger must make a daily report to the collector, on Form 
118, revised, of all such stamps used by him, and for whom used. 

When all the stamps contained in any book shall have been issued 
the collector will return the book, with all the marginal stubs therein, 
to this office, all the blanks in such stubs being filled, so that a per¬ 
fect record of the use of the stamps detached therefrom may be pre¬ 
served. 

The stubs must in no case be removed from any of the books, and 
all unused coupons must remain attached to the marginal stubs. No 
coupon will be of any value when detached from the stamp or stub. 


132 


FILLING OF STAMPS BY USE OF HAND STAMPS. 

All blank spaces in spirit stamps may be filled in by the use of hand 
stamps, including the blank for collector’s signature, except the 
blanks for signatures of storekeeper and gauger, which signatures 
must be written with pen and ink. 

TRADE-MARKS. AND CAUTION NOTICES. 

Section 17 of the act of February 8, 1875 (section 3316a, Compila¬ 
tion of 1900), provides: 

That if any person shall affix or cause to be affixed to or upon any 
cask or package containing or intended to contain distilled spirits 
any imitation stamp or other engraved, printed, stamped, or photo¬ 
graphed label, device, or token, whether the same be designed as a 
trade-mark, caution notice, caution, or otherwise, and which shall be 
in the similitude or likeness of or shall have the semblance or gen¬ 
eral appearance of any internal-revenue stamp required by law to be 
affixed to or upon any cask or package containing distilled spirits, 
he shall, for each offense, be liable to a penalty of one hundred dol¬ 
lars, and, on conviction, shall be fined not more than one thousand 
dollars and imprisoned not more than three years, and the cask or 
package with its contents shall be forfeited to the United States. 

This section clearly provides that the caution notice, label, or stamp 
used by the distiller, rectifier, or wholesale dealer renders the pack¬ 
age liable to seizure, and the party placing thereon said notice or 
label to heavy penalties, provided the caution notice or label shall be 
in the similitude or likeness of or shall have the resemblance or general 
appearance of any internal-revenue stamp required by law to be 
affixed to the cask or package. 

The Government stamps on such packages are all printed on blue 
paper, have borders thereon generally greenish in color, all have the 
picture or vignette of some person thereon, and are all either square 
or rectangular in shape. 

No label, caution notice, or device placed upon such package or cask 
by a distiller, rectifier, wholesale dealer, or other person shall be 
either square or rectangular in shape, nor be printed on blue paper, 
nor shall any green coloring appear on such label or caution notice, 
nor the head or picture of any person, and no scroll or border be 
placed around same. In shape it may be circular, diamond, or heart, 
a triangle, or any other shape except square or rectangular. 

All packages of distilled spirits bearing caution notices, labels, 
stamps, or devices in disregard of the foregoing regulations, also 
bearing Government stamps, will be subject to seizure. 

Gaugers are prohibited from applying their canceling plate to any 
caution notice, trade-mark, or similar device which may be attached 
to casks or packages containing distilled spirits. 


133 


Gaugers will attach to each stub book of other than tax-paid stamps 
returned by them a certificate, properly signed, and pasted on the 
inside of the cover next to the binding, to the effect that all the stubs 
from which stamps have been taken by them—indicating the stamp 
by serial numbers—have been personally examined, and that the 
blanks in the same are all properly filled. 

Deputy collectors will utilize the blank gaugers’ certificate, which 
has been prepared, when returning stub books of wholesale liquor 
dealers’ stamps. - 

In no event will labels, or caution notices of any form or descrip¬ 
tion, be permitted to be applied to casks or packages of spirits in 
such a manner as to cover or obscure any of the marks, brands, or 
stamps required to be placed thereon by law or regulations. 

RESPONSIBILITY FOR ISSUING AND AFFIXING STAMPS. 

Officers who are responsible for the control of stamps for distilled 
spirits should be extremely careful in their issues, so as not to make 
themselves accessory to fraud by enabling dishonest persons to place 
upon the market illicit spirits under cover of genuine stamps. No 
stamp should be issued for or affixed to any package of distilled spirits 
until the officer responsible therefor is satisfied that all provisions of 
the law relating to the same have been complied with, and that the 
stamp correctly represents the character of the contents. The atten¬ 
tion of all officers having control of stamps for distilled spirits, or who 
are directly or indirectly connected with the affixing of the same upon 
packages, is called to the provisions of section 3316, Revised Statutes, 
which impose very heavy penalties upon revenue officers who shall 
issue stamps to any person, who shall affix or cancel stamps in any 
place or in any manner, other than as provided by law or regulations. 
In view of these provisions, it behooves United States internal- 
revenue gaugers to know that parties for whom they stamp casks or 
packages are authorized to have them stamped, and that the stamp 
affixed and canceled by them is the one provided by law for the special 
spirits contained in the cask or package to which it is attached, and 
that it correctly represents the kind, strength, and volume of such 
spirits. 

The issuance of any stamp, indicating the payment of any internal- 
revenue tax, before payment in full therefor has been made to the 
officer or person issuing the same, is forbidden in section 1, act of 
March 1, 1879 (section 3169a, Compilation of 1900)’, and a heavy 
penalty is provided therein for violation of said law. 


134 


ALL PACKAGES CONTAINING FIVE OR MORE GALLONS OF SPIRITS TO 

BEAR STAMPS. 

Under the present system every package containing 5 gallons or 
more of distilled spirits lawfully upon the market must bear a stamp 
or stamps of one of the classes herein described. 

The absence of any stamp or brand required by law from any pack¬ 
age of spirits containing 5 gallons or more works a forfeiture of the 
package and contents. (See sec. 3289, U. S. Rev. Stat.) 

STAMPS, AND ACCOMPANYING BRANDS, ON PACKAGES OF DISTILLED SPIRITS 
MUST BE OPEN TO INSPECTION. 

The stamps, marks, and brands required by law and regulations to 
be applied to casks and packages of distilled spirits are designed to 
bear witness to the legality of the spirits which they cover, and they 
should not be obscured in any manner, or covered by incasing the ves¬ 
sel bearing the same in another, but should at all times be in such 
condition as to admit of ready examination by revenue officers. 

STAMPS, MARKS, AND BRANDS UPON SPIRIT CASKS OR PACKAGES TO BE 
DESTROYED WHEN THE SAME ARE EMPTIED. 

By the provisions of section 3324, Revised Statutes, every person 
who empties or draws off, or causes to be emptied or drawn off, any 
distilled spirits from any cask or package bearing any mark, brand, 
or stamp required by law, must, at the time of emptying such cask or 
package , efface and obliterate such mark, brand, or stamp. Any 
empty cask or package from which the marks, brands, or stamps 
have not been effaced or obliterated is declared to be forfeited, and 
any internal revenue officer should seize the same wherever found. 

Any person or transportation company who shall receive or trans¬ 
port or have in possession with intent to transport or to cause or 
procure to be transported any such empty cask or package, or any 
part thereof , having thereon any brand, mark, or stamp required to 
be placed on casks or packages containing distilled spirits, is liable to 
a penalty of $300 for each such cask or package, or any part of such 
cask or package; and any boat, railroad car, cart, or other vehicle, 
and all horses or other animals used in carrying or transporting the 
same, are to be forfeited. 

Any person who shall fail to efface and obliterate such mark, brand, 
or stamp at the time of emptying such cask or package , or who shall 
receive any such cask or package, or any part thereof, with intent to 
transport the same, or who shall transport the same, or knowingly 
aid or assist therein, or who shall remove any stamp from any cask or 
package without defacing or destroying the same at the time of such 


135 


removal, or aid or assist therein, or who shall have in his possession 
any such stamp so removed, or who shall have in his possession any 
canceled stamp or any stamp which has been or purports to have been 
used, is deemed guilty of a felony, and to be punished by fine and 
imprisonment. 

Section 12, act of March 1,1879, as amended by act of May 28, 1880, 
provides: 

That every person who empties or draws off, or causes to be 
emptied or drawn off, the contents of any package of imported liquors 
stamped as above required, shall, at the time of such emptying, efface, 
obliterate, and destroy the stamp thereon, and also all other marks 
or brands which shall have been placed thereon in accordance with 
the law or regulations concerning imported liquors. Every cask or 
other package from which the stamp for imported liquors required 
by this act to be placed thereon shall not be effaced, obliterated, or 
destroyed on emptying such package shall be forfeited, and the same 
ma}^ be seized by any officer of internal revenue wherever found; 
and all the provisions and penalties of section thirty-three hundred 
and twenty-four of the Revised Statutes of the United States, re¬ 
lating to empty casks or packages from which the marks, brands, or 
stamps have not been effaced or obliterated, and relating to the re¬ 
moval of stamps from packages, and to having in possession any 
stamps so removed, shall apply to the stamps for imported spirits 
herein provided for, and to the casks or other packages on which 
such stamps have been used. 

Section 13, act of March 1, 1879, as amended by section 13, act of 
May 28, 1880, provides: 

That if any person shall purchase or sell, with the imported-liquor 
stamp herein required remaining thereon, or any of the marks or 
brands which shall have been placed thereon in accordance with the 
laws or regulations concerning imported liquors remaining thereon, 
any cask or other package, after the same has been once used to con¬ 
tain imported liquors and has been emptied, or if any person shall 
use or have in possession such cask or package, w T ith any imitation 
of such marks or brands, for the purpose of placing domestic distilled 
spirits therein for sale, every such cask or package with its contents, 
if any, shall be forfeited to the United States. And every such per¬ 
son who shall violate any of the provisions of this section shall be 
liable to a penalty of two hundred dollars for every such cask or 
package so purchased, sold, manufactured, used, or had in possession. 

The attention of collectors is called to the provisions of the law 
printed above, and they will take all necessary steps to secure strict 
compliance therewith in their respective districts, and will at once 
report any violations thereof to the Commissioner of Internal 
Revenue. 

From all these provisions it is clear that the intent of the law is to 
require that the marks, stamps, and brands on any cask of spirits 
shall be effaced and destroyed at the time the cask is emptied, and the 


136 


responsibility of doing this is placed upon the person emptying it. 
The terms “ efface and obliterate ” must be understood to mean a 
complete destruction, so as to leave no part or portion of the marks, 
stamps, or brands legible or intelligible. Persons who have possession 
of, deal in, or are engaged in the transportation of empty spirit casks 
or packages should understand their liability. If they violate the 
law the penalties, though severe, must be enforced, and ignorance of 
its provisions, negligence or carelessness on the part of themselves or 
their subordinates is not sufficient excuse. 

AFFIXING, CANCELLATION, AND COVERING OF STAMPS. 

By virtue of section 3322, Revised Statutes, it is hereby prescribed 
that the affixing, cancellation, and covering of stamps, including 
export stamps, placed on casks or other packages containing distilled 
spirits, shall be done in the following manner, viz: 

Affixing .—The affixing of stamps, other than wholesale liquor deal¬ 
ers’ and fruit distillers’, will be done by the gauger, and, when at a 
distillery, in the presence of the storekeeper. 

In attaching the stamps care will be taken to see that the surface 
of the head of the cask or package where the stamp is to be placed is 
clean and smooth and free from any paint or oily substance, or any 
substance which would have a tendency to cause the stamp to crack 
or peel off; and that the paste or glue furnished is of the best quality, 
strong and well mixed and every way suitable for attaching the 
stamp to the wood. Transparent varnish, or any other adhesive ma¬ 
terial which will cause the stamp to stick securely and permanently, 
may be used for that purpose. 

In affixing stamps other than those having a slip of paper attached 
to the back, one tack will be carefully driven in each corner of the 
stamp, one in the center, and one in the center of each side, making 
seven tacks in all. 

When attaching the stamps, a portion of which is required to be 
cut out when the casks to which they are attached are emptied, 
eight tacks will be used for each stamp, as follows: One to be driven 
in each of the four corners, one in each side near the middle, and 
two near the center above and below the portion to be cut out. 

The tacks will be carefully selected, and none but those having 
well-set heads will be used, the size to be governed by the thickness 
of the head of the package to be stamped. A 5-gallon keg will not, 
of course, bear so large and long a tack as a 40-gallon cask. 

The head of the cask to which the stamps and accompanying marks 
and brands are affixed is termed the “ stamp head,” and the head to 
be used for this purpose is the one to which the rod is applied in 
determining the head diameter. When both heads are measured, 
either may oe taken as the stamp head. 


137 


For instructions to be observed in affixing stamps to spirit packages 
the heads of which are in three parts, see page 163 herein. 

No marks, brands, caution notices, or other devices whatsoever will 
be permitted on the “ stamp head ” which will in any manner cover, 
obscure, or interfere with the stamps, marks, and brands required 
to be affixed by law and regulations, which latter must all be put on 
the stamp head, leaving the other head to be used by the owner. 
(See instructions as to u Trade-marks and caution notices ” herein.) 

Cancellation .—The stamp having been affixed, it must immediately 
be canceled. For this purpose the gauger will use a stencil plate of 
brass or copper, in which will be cut not less than five fine parallel 
waved lines, long enough to extend not less than three-quarters of an 
inch beyond each side of the stamp, on the wood of the cask; and the 
name of the gauger must be cut on one end of the plate, and his title, 
viz, “ U. S. gauger,” and district on the other end, perpendicular to 
the lines. This plate must be imprinted with black, durable coloring 
material, over and across the stamp, as indicated, and the stencil 
plate will be so set as to bring the five parallel waved lines across the 
stamp at such points as will least obscure the reading, and the color¬ 
ing material will be so applied with the brush as to make these lines 
distinct, without blotting or spreading over the stamp. The stencil 
plates, with the edges of the cuttings of the lines, letters, and figures, 
will be kept clean, and the coloring material will be carefully exam¬ 
ined to see that it is of a quality which will flow readily without 
spreading and will make a distinct and durable mark. 

Covering .—The stamp having been affixed and canceled, it must 
be immediately covered with a coating of transparent varnish. No 
varnish will be used which is not transparent, or which is oily enough 
to affect in the least the paste on the stamp. 

Parties for whom spirits are gauged are required to furnish all the 
help needed to handle the cask or package; to furnish the paste or 
glue, tacks, varnish, paint, or coloring material, brushes, stencils, 
branding irons, vessels, and every necessary facility for the prepara¬ 
tion of the cask or package to be put upon the market, except the 
instruments for weighing and gauging the spirits. The above require¬ 
ment as to supplying “ stencils ” is not to be construed as applying to 
the gauger’s canceling stencil, bearing his name, title, and district, as 
this must be provided by the gauger and kept continually in his pos¬ 
session. The gauger being authorized to require all this, and to 
receive from the Government his fee for the work performed, he is in 
turn held responsible that when the cask or package leaves his hands 
the legal preparation for marketing is every way complete. 

Stamps may be tacked and varnished by a person other than the 
gauger, under the direct personal supervision of the gauger. 


138 


UNITED STATES INTERNAL-REVENUE GAUGERS. 

APPOINTMENT OF GAUGER. 

Section 3156, United States Revised Statutes, confers the power of 
appointing United States internal-revenue gaugers upon the Secretary 
of the Treasury, and the act of August 15, 1876 (section 3153a, Com¬ 
pilation of 1900), empowers him, upon the recommendation of the 
Commissioner of Internal Revenue, to impose the duties of storekeeper 
and gauger upon one officer where the amount of spirits produced at 
the distillery to which such officer may be assigned is not sufficient, 
in the judgment of the Commissioner, to warrant the employment of 
two officers to perform the separate duties of storekeeper and gauger. 

Persons holding commissions as “ storekeeper-gauger ” will comply 
strictly with the instructions contained herein for the government of 
gaugers while exercising the functions pertaining to that office. 

Whenever it becomes impracticable for collectors to secure the serv¬ 
ices of persons who will accept the office of gauger, owing to the inade¬ 
quacy of the compensation, they will be permitted to nominate for 
appointment as gaugers one or more of their deputies, who will per¬ 
form the work without extra compensation or fees, but actual travel¬ 
ing expenses incurred for gauging will be allowed. 

A deputy collector should not, however, serve as gauger while act¬ 
ing as collector, or when deputed for the sale of stamps, or engaged in 
any other duty incompatible with that of gauger. 

FOR WHAT PURPOSE APPOINTED. 

Under the internal-revenue system of the United States, distilled 
spirits are made largely the source of income to the Government, 
secured by laying a tax upon each proof gallon produced when the 
spirits are at or above proof, and each wine gallon when the spirits 
are below proof. United States internal-revenue gaugers are ap¬ 
pointed to correctly determine the number of such gallons of spirits 
produced and drawn into casks or packages to be put upon the market, 
and to make record of the same by the required marks, brands, and 
stamps upon the casks or packages, and upon required reports. 

gaugers’ fees and expenses. 

Section 3157, Revised Statutes, provides that “ gaugers shall be 
entitled to receive such fees, to be determined by the quantity gauged, 
as may be prescribed by the Commissioner of Internal Revenue; and 
said fees, together with their actual and necessary traveling expenses, 
shall be verified by their oaths, and shall be paid by the United States 
monthly,” 


139 

(For schedule of fees and instructions respecting allowances for 
expenses, see Gaugers’ Manual.) 

BEFORE ASSIGNMENT TO DUTY. 

Before any United States internal-revenue gauger can be assigned 
to duty he must “ take an oath faithfully to perform his duties, and 
shall give bond, with one or more sureties, satisfactory to the Com¬ 
missioner of Internal Revenue, for the faithful discharge of the 
duties assigned to him by law or regulations; and the penal sum of 
said bond shall not be less than five thousand dollars.” (See sec. 
3156, U. S. Rev. Stat.) 

Neither a distiller, rectifier, nor a wholesale liquor dealer will be 
accepted as surety on the bond of any gauger or storekeeper-gauger; 
and in his certificate on the back of every such bond, as to the suffi¬ 
ciency of the sureties, the collector will add a statement that neither 
of them is a distiller, rectifier, or wholesale liquor dealer. 

ASSIGNMENT AND TRANSFER OF GAUGERS. 

Section 65 of the act of August 28, 1894, provides : 

That internal-revenue gaugers may be assigned to duty at distill¬ 
eries, rectifying houses, or wherever gauging is required to be done, 
and transferred from one place of duty to another, by the Commis¬ 
sioner of Internal Revenue, in like manner as storekeepers and store¬ 
keepers and gaugers are now assigned and transferred. 

The amendatory act of June 28, 1902, provides: 

That the internal-revenue officer holding the combined office of 
storekeeper and gauger shall hereafter be known and denominated as 
a storekeeper-gauger, and when performing the combined duties of 
storekeeper-gauger, or when assigned by the Commissioner of Inter¬ 
nal Revenue to perform the duties of a storekeeper only at any dis¬ 
tillery, or at any general or special bonded warehouse, he shall receive 
for his services the compensation of storekeeper only; but when as¬ 
signed by the Commissioner of Internal Revenue to perform the 
duties of gauger only, under the internal-revenue laws, as provided 
by those laws, he shall receive only the compensation for his services 
and the traveling expenses which are allowed by law to United States 
gaugers. 

These acts confer upon the Commissioner of Internal Revenue 
authority to assign gaugers and storekeeper-gaugers to duty 
wherever gauging is required to be done, and to transfer such officers 
from one place to another, in his discretion, and in the exercise of 
such authority he will thus assign and transfer gaugers and store¬ 
keeper-gaugers when, in his judgment, such course will best subserve 
the interests of the service. 

Except when otherwise directed, collectors may, as heretofore, as¬ 
sign gaugers to duty at any place within their respective districts, or 


140 


transfer them from one place of duty within the district, making due 
report of such action on Form 242, revised. Collectors are expected 
to assign gaugers with due regard for economy, and not to have a 
larger number under assignment at one time than the requirements 
of the service demand. 

Under the provisions of section 64 of the act of August 28, 1894, the 
Commissioner of Internal Revenue may assign officers holding the 
combined office of storekeeper and gauger to perform any of the duties 
of a gauger under the internal-revenue laws. (See regulations herein 
under the heading “Assignment of storekeeper-gaugers to separate 
duties of storekeepers or gaugers.”) 

UNDER WHOSE DIRECTION SERVICES TO BE RENDERED. 

Section 8156 directs that “ the duties of every such gauger shall be 
per formed under the supervision and direction of the collector of the 
district to which he may be assigned, or of the collector in charge of 
exports at any port of entry to which he may be assigned.” The col¬ 
lector may assign gaugers to duty at any place within his district, or 
transfer them from one place of duty to another within the district. 
The special attention of collectors is directed to the importance of ex¬ 
ercising a strict surveillance of the gaugers who are thus placed under 
their supervision, and of requiring of them a full compliance with 
the law and regulations in the discharge of their duties. 

Under the provisions of the act of August 15, 1876 (section 3163a, 
Compilation of 1900), the Commissioner of Internal Revenue is em¬ 
powered to suspend or transfer gaugers, and in the exercise of this 
authority he will transfer gaugers from one district to another when, 
in his judgment, such course will best subserve the interests of the 
service. 

UNITED STATES INTERNAL-REVENUE GAUGERS TO FOLLOW LAW AND 
REGULATIONS, ETC. 

Section 3249, United States Revised Statutes, authorizes the Com¬ 
missioner of Internal Revenue to “ prescribe rules and regulations to 
secure a uniform and correct system of inspection, weighing, marking, 
and gauging of spirits.” The condition of the bond required of 
gaugers is that they will faithfully discharge the duties assigned them 
by law or regulations. Their first efforts after appointment should be 
to acquire a thorough knowledge of all the requirements of the law 
and regulations relating to their office. The important bearing of 
their duties upon the revenue and commercial interests of the country 
imperatively demands that carefulness and accuracy of execution 
should be observed at all times. This can only be secured by those 
appointed to the office of gauger qualifying themselves fully in all the 
duties pertaining to their position before commencing work. 


141 


GAUGING INSTRUMENTS. 

Section 3249, Revised Statutes, authorizes the Commissioner of 
Internal Revenue to prescribe for use such hydrometers, weighing 
and gauging instruments, or other means for ascertaining the strength 
and quantity of spirits subject to tax, as he may deem necessary. 

Standard gauging rod. 

The instrument known as the Prime and McKean combination 
gauging rod is prescribed by the Commissioner for finding the capac¬ 
ity of casks and packages, which instrument must be procured and 
used by all internal-revenue gaugers, and by all persons holding com¬ 
missions as storekeeper-gauger, as directed in the Gaugers’ Manual. 

(For circumstances under which the gauging rod may be employed 
for the determination of the number of wine gallons of spirits in 
casks or packages, see regulations herein under the head of “ Gauging 
by use of weighing beam.”) 

Applications for the rod, or for any portion thereof, must be ad¬ 
dressed to the Commissioner of Internal Revenue, and, at the same 
time, the price must be remitted to the National Metropolitan Bank 
of this city by draft or money order payable to the order of said bank. 

In no instance must the remittance he sent to this office, or he made 


payable to the order of the Commissioner. 

The prices of the rods are as follows: 

44-inch solid metal rod complete_$10. 00 

44-inch solid metal rod proper_ 4. 20 

44-inch fixed caliper_ 1. 50 

44-inch sliding caliper_ 1. 30 

44-inch mean-diameter scale. __ 2. 00 

44-inch head slide_ 1. 00 

*G2-inch solid metal rod complete_ 12. 00 

62-inch solid metal rod proper_ 5. 00 

62-inch fixed caliper- 1. 70 

62-inch sliding caliper- 1. 60 

62-inch mean-diameter scale_ 2. 50 

62-inch head slide- 1. 20 


WANTAGE ROD. 

For determining the wantage, or ullage, in casks, Alexander’s im¬ 
proved wantage rod is prescribed, the price of which is $2.50. Offi¬ 
cers who are supplied with Prime’s patent wantage rods will be 
allotved to continue their use as long as the same are in good condition, 
but future orders will be filled with rods of the Alexander pattern. 

^Ti is instrument must be procured and used by all officers who are 
required to procure the standard gauging rod, except as noted above, 
and application and payment for the wantage rod must be made in 














142 


the same manner as directed in the case of the gauging rod, except 
that the remittance for the wantage rod must be made to the Com¬ 
mercial and Farmers' National Bank at Baltimore , Maryland. 

The post-office address of the intending purchaser should be plainly 
indicated in the application, as the wantage rod will be forwarded by 
mail at the risk of the purchaser, except when otherwise requested; 
in which case it will be sent by express at his expense. 

Hydrometers. 

The standard hydrometers, for weighing or determining the proof 
of distilled spirits, are supplied for the use of internal-revenue 
gaugers, at the expense of the Government, on the application of col¬ 
lectors, which application should be addressed to the Commissioner of 
Internal Revenue. 

These instruments are necessarily expensive, in consequence of the 
strict accuracy required in their manufacture, and internal-revenue 
officers are, therefore, expected to exercise due economy in making 
requisition for the same, as well as care in their use. 

Neither full nor partial sets should be ordered in excess of the 
immediate demands of the service. Where, however, the needs of the 
service justify, a limited supply of hydrometer stems and thermom¬ 
eters will be furnished to collectors on requisition, in order that loss 
by breakage may be replaced without delay. 

Complete sets of hydrometers will not be supplied to districts in 
excess of the number of qualified gauging officers therein, except that, 
when deemed necessary, an extra set will be furnished, to be retained 
in the collector’s office, for use in testing the other instruments in the 
district. 

Where an extra set is on hand for such use, it will be issued to a 
gauger requiring the same, on the receipt of a new set, so that the set 
last received will be constantly retained for use as a standard. 

When collectors have a standard hydrometer in their office, they 
will cause the Government instruments within a reasonable distance 
to be tested at stated intervals, and all the sets in the district will be 
tested as often as once in six months. 

Gaugers will be required to make an occasional test of the instru¬ 
ments in their hands by comparing, in spirits of the proper strength, 
a stem of a lower per cent with the stem of the next higher per cent, 
at or between the points where both stems indicate the same per cent. 

When extra stems are required, they should be designated by letter. 

A stem reads from 0 to 100; B stem from 80 to 120; C stem from 
100 to 140; D stem from 130 to 170; and E stem from 160 to 200— 
ranging from water, marked 0, to absolute alcohol, marked 200. 

Requisition should be made only for such instruments as the needs 
of the service require. It is not necessary, in all instances, that gaug- 


143 


ing officers shall be supplied with a full set of hydrometers, as a cup, 
thermometer, and a B stem will be sufficient for the requirements of 
many officers. 

Broken hydrometer stems and thermometers will not be returned to 
this office. If, however, such instruments are found to be incorrect 
and unbroken, they will be carefully packed and returned by express, 
and to each instrument a statement showing the nature and extent of 
its inaccuracy, and where and by 'whom it was used should be attached. 

United States internal-revenue gaugers will be held responsible for 
the careful usage of the hydrometers in their possession, and any care¬ 
lessness in handling, resulting in the breakage of stems or other dam¬ 
age, will be noted against them. Upon retiring from office, or upon 
being transferred to another district, gaugers will turn in the hydrom¬ 
eters to the collector of the district in which they have been assigned, 
taking his receipt therefor. 

Collectors will not approve the final account of a gauger retiring 
from the service until he has surrendered the Government instruments 
in his possession. 

Collectors will make reports quarterly to the Commissioner of Inter¬ 
nal Revenue, on Form 152, revised, showing the number of full and 
partial sets of hydrometers on hand at the beginning and close of the 
quarter, as well as received and disposed of during the quarter. 

(See instructions regarding return on Form 152, revised, herein.) 

Any United States internal-revenue gauger using other than the 
standard instruments will be recommended for dismissal from office, 
and be held responsible upon his bond. 

(For instructions as to use of instruments, see the Gaugers’ Manual.) 

WEIGHING BEAM. 

Under authority conferred in section 3249, Revised Statutes, Fair¬ 
banks’s weighing beam has been prescribed for the official determina¬ 
tion of the number of gallons of spirits in casks or packages, concur¬ 
rently with the continued partial use of the gauging rod and wantage 
rod heretofore prescribed. 

GAUGING BY USE OF WEIGHING BEAM. 

The gauging herein directed will be performed by weighing the 
spirits whenever practicable. 

It is required that the weighing beam shall be employed for the 
determination of the wine gallons contents of all casks or packages, 
except that until otherwise directed the gauging rod will be used for 
the official determination of the number of gallons of spirits in casks 
or packages as enumerated in the four following paragraphs: 

1. On regauging casks or packages of spirits which did not have 
their weight determined and marked when filled. 


144 


2. At all fruit distilleries where the production is so limited as not 
to require the attendance of a gauger at least twice a week during the 
season when in operation. (All fruit distilleries producing 10,000 
gallons of brandy, or above, annually should be visited by a gauger 
at least twice a week during the season.) 

3. At the establishments of rectifiers rectifying less than 5,000 
proof gallons of spirits annually. 

It is expected that the records of the rectifying business, at all 
houses where the inspection is by the use of the rod, will be carefully 
scrutinized from month to month to determine if at any time the 
quantity of spirits rectified during any special-tax year exceeds 5,000 
gallons, and whenever that point is reached collectors will take meas¬ 
ures to require the use of the weighing beam. 

4. For ascertaining the contents of casks or packages of spirits, 
both when about to be dumped for rectification and after completion 
of the process of rectification, which contain saccharine matter or 
other material to such an extent that no indication is shown on the 
hydrometer stem, or when, although an incorrect indication is shown 
by the stem, the presence of saccharine matter in large proportions is 
unmistakably apparent. 

Even in case of the goods described in the last paragraph, however, 
the gauger who gauges spirits after rectification will, except at houses 
where the use of the scales is not required in any case, as specified in 
above paragraph numbered 3, determine the gross weight of the pack¬ 
age and mark the same on the bung stave of the barrel, preceding 
the other marks required by regulation to be placed thereon. 

PROCUREMENT OF WEIGHING BEAMS, ETC. 

Weighing beams, poises, and barrel hooks for use of internal- 
revenue officers, as directed herein, will be supplied upon requisition 
of collectors at the expense of the Government, but the means for 
anchoring and suspending casks when weighed must be provided by 
parties for whom spirits are inspected. 

Collectors are expected to exercise due economy in making requisi¬ 
tion for weighing beams and appliances, and to refrain from apply¬ 
ing for such instruments in excess of present actual requirements of 
the service, as set forth herein. 

Care will be particularly exercised to see that all beams in the dis¬ 
trict are in actual use prior to making requisition for additional ones. 

In all instances where business is discontinued at rectifying estab¬ 
lishments, or where distilleries are permanently suspended, or sus¬ 
pend without spirits in warehouse and with no expectation of resum¬ 
ing operations for a period of three months or upward, the beams in 
use thereat should be returned to the collector or to the proper divi- 


145 

sion deputy collector, to be reissued for service elsewhere as occasion 
requires. 

In making requisition for weighing beams complete, collectors will 
state the particular place or places at which beams are required. 

In the event that several gaugers are on duty at the same distillery 
or rectifying house, it is quite probable that each one will not require 
a weighing beam. In all instances, therefore, where requisition is 
made for more than one weighing beam for use at any distillery or 
rectifying house, the collector will state in such requisition the num¬ 
ber of gaugers on duty thereat, as well as the average number of 
packages inspected daily at each place. 

Immediately upon receiving weighing beams, etc., the collector will 
receipt for the same to the Commissioner of Internal Revenue, and 
state their condition on reception. 

The number of “ weighing beams complete ” received will be taken 
up as such and duly returned on Forms 152 and 289, and whenever a 
weighing beam is issued, proper record thereof will be made by the 
collector on his Record 99. All weighing beams issued since Decem¬ 
ber, 1897, are marked for identification with a serial number on the 
under side of the thick part or butt end of the beam proper. 

Officers having beams in their possession will be held to the same 
responsibility therefor, and required to duly account for such prop¬ 
erty, as provided in case of Government hydrometers. 

Collectors will hold officers to a rigid accountability in this matter 
and decline to approve the pay account of any officer failing to duly 
account for the beam on Form 289 or to turn the same over to the 
proper officer on retiring from the service. 

EXTRA SETS OF POISES AND BARRED HOOKS. 

Should a gauging officer be assigned to more than one place where 
weighing is required under the provisions herein recited, extra sets 
of poises and barrel hooks will be supplied, for retention at the most 
important of such places, when it is shown that a saving of transpor¬ 
tation would thereby be effected. 

Extra appliances as above will, however, be furnished for retention 
only at houses where their use is frequently required. 

Collectors making requisition for extra poises and barrel hooks will 
therefore state explicitly the necessity for the same, designating the 
distillery or rectifying house at which they are to be retained and the 
probable number of monthly visits which the gauger will be required 
to make at each. 

“ Extra sets of appliances,” supplied as above, will be receipted for 
and duly returned as such in the same manner as weighing beams 
complete, and gaugers having charge of the same will be held respon- 

56815—08-10 


146 


sible therefor and expected to see that they are kept in some place 
where not likely to be subjected to misuse. 

WEIGHING BEAM APPLIANCES. 

Accompanying each beam are two poises (one of 8 pounds and one 
of 16 pounds), a set of barrel hooks, and a counterpoise to the barrel 
hooks. This combination will be termed a “ weighing beam com¬ 
plete.” On each side of the beam is a double set of figures, the upper 
one indicating the reading in pounds of the 8-pound poise—in which 
case each notch represents one-half pound—and the lower set of 
figures indicating the reading of the 16-pound poise, each notch on 
the beam representing, in this instance, 1 pound. Thus, for example, 
if the larger poise rests in the “ 300 ” notch in the lower row of figures 
and the small poise in the seventh notch beyond the “ 50 ” in the 
upper scale, the total weight is 300+53J=353^ pounds. 

It will be found convenient to determine the sum total indicated by 
both poises if the large poise be allowed to remain continually in a 
notch indicating a number of pounds divisible by 10, as in the above 
example. 

Thus, where the weight of a barrel and its contents range from, 
say, 300 to 440 pounds, the large poise can rest continuously in the 
300-pound notch, and the addition thereto of the weight indicated by 
the small poise is thereby facilitated. 

USE AND CARE OF WEIGHING BEAMS AND APPLIANCES. 

Weighing beams and appliances must be carefully housed in a dry, 
secure place, where they will not be subjected to rough usage or be 
liable to rust on account of dampness. At all times when beams are 
not in use at distilleries they should be locked up, either in the cistern 
room or in the bonded warehouse, where such places are adapted for 
the purpose. In using the beams, they should be kept as nearly hori¬ 
zontal as possible. In no instance should the cask be raised by using 
the beam as a lever, as such course destroys the knife edge of the 
pivots. The poise should not be moved along the top of the notches 
on the beam, but should in all cases be raised and placed in the notch. 
In no instance must the poises be used for other than their intended 
purpose, nor must foreign matter be permitted to adhere thereto, as 
either course tends to render the same inaccurate. 

All officers having weighing beams in their charge will be held to a 
rigid accountability in this matter, and will be required to duly report 
the same on Form 289, revised. Collectors will decline to approve the 
pay account of any officer failing to perform his duty in this regard. 

In case a beam becomes inaccurate for any reason, the collector will 
report the fact to this office, stating as explicitly as possible the nature 


147 


and extent of the defect, and will await instructions as to the disposi¬ 
tion to be made of the imperfect beam. 

USE OF SCALES OTHER THAN THE PRESCRIBED WEIGHING BEAM. 

If parties for whom distilled spirits are inspected elect to furnish 
their own scales for the use of the United States gauger, that course 
may be pursued, provided the scales so furnished are correct, in good 
condition, of sufficient capacity, and found to be accurate by actual 
test made by the gauger in each instance before using. This permis¬ 
sion includes the use of platform scales as well as other forms of 
weighing apparatus which conform to the foregoing requirements. 

EXAMINATION OF WEIGHING BEAM. 

Before proceeding to weigh, on any occasion, the officer will care¬ 
fully examine the weighing beam, to be assured that the same is in 
good condition. Care will be particularly exercised to see that the 
beam is properly adjusted and that it balances perfectly with the 
barrel hooks and counterpoise attached. The accuracy of the beam 
will also be tested each day by weighing the 16-pound poise by the 
use of the 8-pound poise. 

READING OF SCALE ON WEIGHING BEAM. 

Pains will be taken at all times to note the correct reading of the 
scales to the half pound, and, in case of doubt as to which notch shall 
be read, the cask will be allowed to preponderate; that is, the notch 
denoting the lesser weight will be read. 

EXAMINATION OF CASKS BEFORE WEIGHING. 

Officers are required to examine each cask or package before weigh¬ 
ing the same empty, and will not inspect any package which is not 
thoroughly dry, or which contains or has on its exterior any sub¬ 
stance which will prevent the correct ascertainment of the tare of the 
cask. 

WEIGHING CASKS OF SPIRITS ON ENTRY INTO DISTILLERY WAREHOUSE. 

The weight of the empty cask will be determined immediately pre¬ 
ceding the filling of the same in all cases, and the tare of a number of 
casks may be ascertained and marked before any are filled, but not 
exceeding the number which are to be filled before the gauger leaves 
them. 

(For marking casks and rendering reports when spirits are weighed, 
see the Gaugers’ Manual and the Gaugers’ Weighing Manual.) 


148 


GAUGING OFFICERS’ RETURN OF WEIGHING BEAMS, GAUGING INSTRUMENTS, 
LOCKS, ETC., FORM 289, REVISED. 

All internal-revenue gaugers, storekeepers, and storekeeper-gaugers 
to whom Government weighing beams and appliances, hydrometers, 
locks, seals, and Gaugers’ Manuals are intrusted, will report to the 
collector such property, on Form 289, revised, at the end of each 
month, as well as upon retirement from the service. 

Such report will embrace in the proper spaces the exact number of 
the articles enumerated in the hands of the officer on the 1st of the 
month, as shown by the previous report, the correct number received 
during the month, and the number actually on hand at the end of the 
month. 

If any losses of such articles have occurred during the month, such 
losses must be fully and satisfactorily explained on this form in the 
space provided for that purpose. 

Report on this form will be forwarded to the collector by the officer, 
with his monthly voucher for pay, on Form 107, or 150, as the case 
may be,, and such pay account will not receive approval until the 
report is properly rendered as above and all the specified articles sat¬ 
isfactorily accounted for thereon. 

In case of an officer retiring from the service, in addition to submit¬ 
ting with his final pay account a report on Form 289, revised, he will 
be required to file with the collector a receipt showing that all Gov¬ 
ernment weighing beams and appliances, hydrometers, and Gaugers’ 
Manuals in his possession have been actually delivered to the deputy 
collector or other proper officer. 

collectors’ return of locks, gauging instruments, weighing beams, 
ETC., FORM 152, REVISED. 

Collectors will make return on Form 152, revised, to the Commis¬ 
sioner of Internal Revenue, on the last days of March, June, Septem¬ 
ber, and December of each year, or within ten days thereafter, as well 
as upon retirement from the service. 

Outgoing collectors will take receipts from their successors in office 
for the Government property shown to be on hand on their final return 
on this form, and forward the same therewith, and their final accounts 
will not be adjusted until all such property has been satisfactorily 
accounted for. 

Collectors will be held responsible for such Government property 
enumerated on this form as is received from their predecessors in 
office, as well as for that supplied upon their respective requisitions. 

The several returns made to the collector on Form 289 will, after 
verification, serve as a basis for the return to be rendered on this 
form, and the number of each of the articles reported hereon as being 


149 


on hand at the end of each quarter should be the aggregate of those 
reported on hand in the returns on Form 289 for the last month of 
the quarter, added to those then in the possession of the collector or 
of his deputies. Care will be taken to return the several articles in 
the proper columns on this form. 

Only such articles as are supplied at the expense of the United 
States will be returned on this form, and care will be taken to include 
all such articles in the number on hand, whether the same are in use 
or otherwise. 

Whenever a distiller permanently discontinues operations, the locks 
and seals thus rendered unnecessary will be turned over to the col¬ 
lector or to the proper deputy. 

A hydrometer set will be taken to comprehend a box containing a 
cup, thermometer, and such stems as the gauger requires in his work; 
and sets of hydrometers will be carried as such on this form, notwith¬ 
standing some of the instruments may be missing therefrom. 

Requisition should be made to complete such sets so far as the 
needs of the service require. It is not necessary, in all instances, 
that the gauging officer shall be supplied with a full complement of 
hydrometer stems, as the No. 2, or 66 B,” stem will be sufficient for the 
use of many officers. 

Whenever any extra instruments are placed in sets from the stock 
on hand they will be dropped from the return on the line “ Returned 
or disposed of.” 

“ Weighing beams complete ” comprise a beam proper, two poises 
(one of 8 pounds and one of 16 pounds), a set of barrel hooks, and a 
counterpoise to the barrel hooks. Extra sets of appliances compre¬ 
hend the above with the exception of the beam proper. No weighing 
beams or appliances will be returned on this form, except such as are 
supplied for weighing spirits. 

Under “ Gaugers’ Manuals ” and “ Gaugers’ Weighing Manuals ” 
will be returned all of the Gaugers’ Manuals and Gaugers’ Weighing 
Manuals in the district, whether in the hands of gauging officers or 
otherwise. 

record 99. 

Record 99 is prescribed for the use of collectors in recording and 
tracing the gauging instruments, locks, and weighing beams issued 
by them. 

Under the heading “ To whom issued ” will be entered the name of 
the officer to whom the article specified is charged, followed by the 
letters G, S-G, or D, signifying gauger, storekeeper-gauger, or deputy 
collector, as the case may be, except that where locks are issued and 
where a weighing beam is placed for permanent use at a distillery 
or rectifying house, the name of the distiller, rectifier, or other pro¬ 
prietor of the premises will be entered under such heading. 


150 


In case of instruments marked with a serial number, such number 
must be entered in the appropriate column; and where a complete 
hydrometer set is issued, the several instruments of which the set is 
composed should be specified by their serial numbers in the proper 
columns. Where instruments not marked with a serial number are 
issued, the aggregate number sent out will be written under the 
proper heading. 

In the column of “ Eemarks ” will be recorded any subsequent dis¬ 
position of the article specified. For example, if a stem is reported 
broken by the officer having possession of it, and the collector is satis¬ 
fied of the correctness of the report by the return of the label bearing 
the serial number, or otherwise, the fact of breakage will be entered 
in said column. When an instrument is returned to the collector’s 
office for any reason, as, for example, when an officer is about to be 
separated from the service, the date of such return will be entered in 
this column. Where an instrument so returned is again sent out, it 
will be charged to the person to whom reissued in the same manner 
as in case of an original issue. This course should also be pursued 
where locks or weighing beams are returned from a distillery or recti¬ 
fying house and reissued. 

Whenever a hydrometer stem is reported as destroyed or broken by 
the officer charged therewith, the collector will require him to return 
the label pertaining to the same before allowing credit therefor, except 
in instances where from the nature of the case it is impossible to make 
such return, when other evidence of the destruction of the stem may 
be accepted, in the discretion of the collector. Where a thermometer 
is alleged to have been broken or destroyed, the ivory or metal back 
should be returned or accounted for in like manner. Hydrometer 
cups which have become unserviceable must be returned to the col¬ 
lector’s office, there to be retained until a number have accumulated, 
when they will be shipped to this office. 

Collectors will ascertain (from Form 289 and otherwise) the loca¬ 
tion of the gauging instruments, etc., in their districts at the time of 
opening this record and charge them in the proper columns before 
making entry of current issues. 

Each collector is expected to see that full and complete entries are 
promptly made in this record on the date of issue in accordance with 
the foregoing instructions, and it is expected that the record will be 
so kept as to indicate at all times in whose possession, or at what 
house, each article is retained, and to furnish a complete account of 
each article from the time of original issue. 

The entries in this record must be made promptly, so that it shall 
at all times indicate the actual state of the facts, and constant refer¬ 
ence to it must be had before Government property of the kind therein 
specified is issued and before the accounts of officers are approved. 


151 


ALLOWANCE FOR WANTAGE. 

United States internal-revenue gaugers are strictly prohibited from 
making any allowance for wantage in casks of spirits gauged by them 
where no actual wantage exists. 

When casks are not full, only the actual wantage, as determined by 
the wantage rod, will be allowed. No provision is made for reporting 
any fraction of a gallon as wantage, except a half; but a wantage of 
one-half gallon is not to be allowed, at time of original inspection at 
distilleries, other than at fruit distilleries having a daily spirit-pro¬ 
ducing capacity of not exceeding 100 gallons, except when existing 
to the full limit of the allowance; that is to say, where distillers do 
not desire to completely fill their casks or packages the ullage must be 
exactly one-half wine gallon, 1 wine gallon, 1J wine gallons, or 2 wine 
gallons, according to the size of the package and the following regula¬ 
tions in that respect. 

Accordingly, gaugers and storekeeper-gaugers will decline to 
weigh, gauge, mark, or stamp any package inspected as above en¬ 
titled to a wantage of one-half of one wine gallon if the same has an 
ullage either greater or less than exactly one-half gallon; and so on 
as to the higher rates of ullage allowed for larger packages. 

When spirits are inspected at fruit distilleries having a daily 
spirit-producing capacity of not exceeding 100 gallons a wantage of 
one-half wine gallon will be allowed when the wantage approaches 
one-half gallon; that is, when the wantage is nearer one-half gallon 
than no wantage. 

The same rule applies at such distilleries in reporting wantage 
greater than one-half gallon, viz, if the wantage is nearer 1 gallon 
than one-half gallon, it will be called 1 gallon; if three-fourths of a 
gallon or nearer one-half gallon than 1 gallon, it will be called a half 
gallon. 

Gaugers gauging for entry into distillery warehouse, at fruit distill¬ 
eries whose daily spirit-producing capacity exceeds 100 proof gal¬ 
lons, and at rectifying houses, will decline to brand, mark, or stamp 
any package of distilled spirits of a capacity less than 63 wine gal¬ 
lons which has an ullage exceeding one-half of 1 wine gallon when 
the temperature of the spirits is 50° F. or above, or an ullage of over 
1 gallon if the temperature is below 50° F. 

No package of 63 gallons capacity and upward to 126 gallons will 
be branded, marked, and stamped if the ullage exceeds 1 gallon when 
the temperature of the spirits is at 50° F. or above, or if it exceeds 1J 
wine gallons when the temperature is below 50°. 

In packages of 126 gallons capacity and upward the wantage will 
be restricted to 2 gallons when the temperature of the spirits is at 50° 
or above, and to 3 gallons when the temperature of the spirits is below 
50° F. 


152 


In case, however, a final package is insufficiently filled, because the 
distillery cisterns or the rectifying vats are exhausted, the actual 
wantage thus occurring in such final package will be marked and re¬ 
ported and the fact noted on Form 59 or 59J, as the case may be. 

Where an aging apparatus, approved by this office, is used in a dis¬ 
tillery warehouse, if it be found to be necessary for the successful or 
convenient operation of the machine, and if the distiller so desires, an 
ullage of 1 gallon may be allowed for packages of less than 63 gallons 
capacity. When such ullage is allowed, gaugers will note on Form 
59 as reason therefor that an aging apparatus is employed at that dis¬ 
tillery, giving the kind of apparatus used. 

CORRECTION OF VOLUME. 

Correction of volume for temperature will be made on the entire 
contents of the cask. If the cask is full, the correction will be made 
upon the capacity of the cask. If the cask is not filled, the actual 
wantage will be subtracted before the correction is made. The stand¬ 
ard for measuring volume being established at 60° F., the correction 
for expansion or increase of volume must be made by subtracting a 
per centum proportioned to the rise in temperature above 60°, and 
the correction for contraction or decrease in volume by adding a per 
centum proportioned to the fall in temperature below 60°. Such per 
centum will be found in the right-hand column in Table No. 5 of the 
Gaugers’ Manual. 

In computing correction of volume, gaugers should bear in mind 
the fact that the decimals in the right-hand column on each page of 
said Table No. 5 represent the correction required to bring 100 gallons 
of spirits, at the given temperature, to its volume or quantity at the 
standard temperature, 60° F. Thus “ 0.5 subt.” indicates that the 
spirits at the given indication and temperature would contract 0.5, or 
one-half of a gallon, to every 100 gallons should the temperature of 
the spirits decline to 60° F. 

After having deducted the actual wantage from the capacity of the 
cask and multiplied the apparent contents by the decimal of correc¬ 
tion to volume, should there be a fraction of a wine gallon in the 
product less than twenty-five hundredths (0.25), the fraction will be 
dropped; if twenty-five hundredths (0.25), or any intermediate frac¬ 
tion to and including seventy-five hundredths (0.75), it will be called 
one-half gallon; if above seventy-five hundredths (0.75), it will be 
called a whole gallon. The wine gallons thus found will be cut upon 
the bung stave of the cask in a legible manner. This will be done 
by cutting the full capacity of the cask, with the wantage immediately 
beneath, and under this the correction to volume, followed by the 
sign ( + ) if the correction is added, or minus (—) if subtracted, and 


153 


in all instances the true contents in wine gallons must be made to 
thus appear. Multiply the true wine gallons of the contents, as cut- 
upon the cask, by the per centum of proof (which must also be cut 
on the bung stave when gauging at distilleries), and the product will 
be the number of proof gallons of spirits in the cask, which number 
will be cut upon the bung stave after the per cents of proof, retaining 
in this instance fractions as found to two decimal places. Where, 
however, the proof of the spirits is exactly 100, the number of proof 
gallons need not be cut on the bung stave. In case the inspection is 
performed by the use of the scales the marks will be cut on the bung 
stave, as directed hereinafter. 

VARIETIES OF CASKS. 

Casks are classified into three varieties, and the distinction consists 
in the curvature of the staves at what is termed the quarter hoop; 
that is, at a point midway between the bung and chimb. 

Those casks having the least curvature are termed the first variety, 
those having a medium curvature the second variety, and those hav¬ 
ing the greatest curvature the third variety. 

No fixed inflexible rule for classifying casks is practicable, and 
therefore gaugers must exercise their judgment and discretion in 
determining under which variety casks should properly be gauged. 
The second variety cask is the one ordinarily in use. 

Where casks are gauged as the first or third variety, the variety will 
be cut upon the bung stave after the proof gallons—thus, 1-V, 3-V. 

Rule for finding the capacity of a cash by the use of the gauging rod . 

Find the mean diameter of the first variety of casks by multiplying 
the difference between the head diameter and the bung diameter by 
the decimal 0.55 and adding the product to the head diameter, the 
sum being the mean diameter; of the second variety by multiplying 
the difference between the two diameters by the decimal 0.63 and 
adding the product to the head; of the third variety, by multiplying 
by the decimal 0.70 and adding the product to the head. Having 
thus found the mean diameter, multiply the square of the mean 
diameter, in inches, by the decimal 0.0034, which is substantially the 
same as dividing by 294, being the number of cylindrical inches in a 
wine gallon, and the product will be the wine gallons in 1 inch in 
length. Multiply this by the length in inches, and the product will 
be the capacity of the cask in wine gallons. 

Rules for gauging cisterns or tubs. 

Take the dimensions in inches and tenths of inches. Add together 
the square of the top diameter, the square of the bottom diameter, 


154 


and four times the square of the midway diameter (ascertained by 
adding the top and bottom diameters together and dividing by 2), 
and divide the sum by 6, which gives the square of the true mean 
diameter; multiply this by the height of the cistern, and the product 
will be the capacity in cylindrical inches. As there are 294 cylin¬ 
drical inches in a gallon, divide this last product by 294, and the 
quotient is the number of gallons contained in the cistern. 

Example. 

108 inches, top diameter. 

120 inches, bottom diameter. 

Divided by 2)228 

114 midway diameter. 

100 in height. 

108 X 108 = 11664’ 

120 X 120 = 14400 

114 X 114 X 4 = 51984 


78048 -h 6 = 13008 
13008 X 100 -s- 294 = 4424 + gallons. 

Should the cistern be full or warped so as not to be a perfect circle, 
or otherwise in such condition that the diameter of the bottom can 
not be taken, the following rule, though not mathematically correct, 
is for all practical purposes sufficiently so, the difference being only 
shown in large cisterns, where the difference between the top and 
bottom diameters is considerable. 

Take the outside circumference of the cistern halfway between the 
bottom and top, divide this by 3.1416 (or multiply by 7 and divide by 
22), and you have the mean diameter on the outside; deduct from this 
twice the thickness of the staves, and you have the mean inside diam¬ 
eter. Multiply this sum by itself and by the height, and the product 
by 0.0034; the product is the capacity of the cistern in gallons. 

Example (dimensions being same as in last example).—Outside 
circumference of cistern, 367.5 inches; height, 100 inches; staves, 
inches thick. 

367.5 —j— 3.1416 = 117 — 3 inches = 114 inches; 114 X 114 X 100 — 
1,299,600 X .0034 = 4,418 gallons. 

(For instructions as to gaugers’ reports see the Gaugers’ Manual.) 



155 


DUTIES OF GAUGING OFFICERS. 

COMPUTING TAX ON DISTILLED SPIRITS. 

Section 48 of the act of August 28, 1894, as herein above recited 
provides: 

That on and after the passage of this act there shall be levied and 
collected on all distilled spirits in bond at that time, or that have been 
or tnat may be then or thereafter produced in the United States, on 
which the tax is not paid before that day, a tax of one dollar and ten 
cents on each proof gallon, or wine gallon when below proof, and a 
proportionate tax at a like rate on all fractional parts of such proof 
or wine gallon: Provided , That in computing the tax on any package 
of spirits all fractional parts of a gallon less than one-tenth shall be 
excluded. 

The Commissioner of Internal Revenue, with the approval of the 
Secretary of the Treasury, shall prescribe and furnish suitable stamps 
denoting the payment of the internal-revenue tax imposed by this sec¬ 
tion; and until such stamps are prepared and furnished, the stamps 
now used to denote the payment of the internal-revenue tax on dis¬ 
tilled spirits shall be affixed to all packages containing distilled spirits 
on which the tax imposed by this section is paid; and the Commis¬ 
sioner of Internal Revenue shall, by assessment or otherwise,, cause 
to be collected the tax on any fractional gallon contained in each of 
such packages as ascertained by the original gauge, or regauge when 
made, before or at the time of removal of such packages from ware¬ 
house or other place of storage; and all pro\dsions of existing laws 
relating to stamps denoting the payment of internal-revenue tax on 
distilled spirits, so far as applicable, are hereby extended to the 
stamps provided for in this section. 

That the tax herein imposed shall be paid by the distiller of the 
spirits, on or before their removal from the distillery or place of stor¬ 
age, except in case the removal therefrom without payment of tax is 
authorized by law; and (upon spirits lawfully deposited in any dis¬ 
tillery warehouse, or other bonded warehouse, established under inter¬ 
nal-revenue laws) within eight years from the date of the original 
entry for deposit in any distillery warehouse, or from the date of 
original gauge of fruit brandy deposited in special bonded warehouse, 
except in case of withdrawal therefrom without payment of tax as 
authorized by law. 

Under the above provisions, in computing the tax on any package 
of spirits, officers will exclude the hundredths of a gallon less than 
one-tenth whenever they may arise. 

Thus 40.07 proof gallons will be called 40 gallons for the purpose 
of taxation; 47.53 proof gallons will be called 47.5 gallons, and so on. 

It is of course to be understood that when spirits are below proof 
the tax attaches to the wine gallons. For example: In case of a 
package of spirits, when the loss is not excessive, if the contents are 
found to be 44.59 wine gallons and 44.15 proof gallons, the tax will 
be computed on 44.5 gallons. 


156 


Officers will ordinarily be able to mentally compute the tax under 
the new rate of $1.10 per gallon by simply adding one-tenth of the 
taxable quantity to itself. Thus, for example, if the tax is to be com¬ 
puted on 44.59 gallons, the computation will be 44.5+4.45=$48.95, 
The tax on 79.43 gallons will be 79.4+7.94=$87.34. 

ALLOWANCE FOR LOSS OF SPIRITS WHILE IN WAREHOUSE. 

Section 50 of the act of August 28, 1894, provides: 

That the distiller of ajiy distilled spirits deposited in any distillery 
warehouse, or special-bonded warehouse, or in any general-bonded 
warehouse established under the provisions of this act, may, prior to 
the expiration of four years from the date of original gauge as to 
fruit brandy, or original entry as to all other spirits, file with the col¬ 
lector a notice giving a description of the packages containing the 
spirits, and request a regauge of the same, and thereupon the collector 
shall direct a gauger to regauge the spirits, and to mark upon each 
such package the number of gauge or wine gallons and proof gallons 
therein contained. If upon such regauging it shall appear that there 
has been a loss of distilled spirits from any cask or package, without 
the fault or negligence of the distiller thereof, taxes shall be collected 
only on the quantity of distilled spirits contained in such cask or 
package at the time of the withdrawal thereof from the distillery 
warehouse or other bonded warehouse: Provided , however , That the 
allowance which shall be made for such loss of spirits as aforesaid 
shall not exceed one proof gallon for two months or part thereof; 
one and one-half gallons for three and four months; two gallons for 
five and six months; two and one-half gallons for seven and eight 
months; three gallons for nine and ten months; three and one-half 
gallons for eleven and twelve months; four gallons for thirteen, four¬ 
teen, and fifteen months; four and one-half gallons for sixteen, seven¬ 
teen, and eighteen months; five gallons for nineteen, twenty, and 
twenty-one months; five and one-half gallons for twenty-two, twenty - 
three, and twenty-four months; six gallons for twenty-five, twenty- 
six, and twenty-seven months; six and one-half gallons for twenty- 
eight, twenty-nine, and thirty months; seven gallons for thirty-one, 
thirty-two, and thirty-three months; seven and one-half gallons for 
thirty-four, thirty-five, and thirty-six months; eight gallons for 
thirty-seven, thirty-eight, thirty-nine, and forty months; eight and 
one-half gallons for forty-one, forty-two, forty-three, and forty-four 
months; nine gallons for forty-five, forty-six, forty-seven, and forty- 
eight months; and no further allowance shall be made: And provided 
further , That in case such spirits shall remain in warehouse after the 
same have been regauged, the packages containing the spirits shall, 
at the time of withdrawal from warehouse and at such other times as 
the Commissioner of Intern} 1 Revenue may direct, be again regauged 
or inspected; and if found to contain a larger quantity than shovrn 
by the first regauge, the tax shall be collected and paid on the quan¬ 
tity contained in each such package as shown by the original gauge: 
And provided further , That taxes shall be collected on the quantity 
contained in each cask or package as shown by the original gauge, 
where the distiller does not request a regauge before the expiration 


157 


of four years from the date of original entry or gauge: Provided also. 
That the foregoing allowance of loss shall apply only to casks or 
packages of a capacity of forty or more wine gallons, and that the 
allowance for loss on casks or packages of less capacity than forty 
gallons shall not exceed one-half the amount allowed on said forty- 
gallon cask or package; but no allowance shall be made on casks or 
packages of less capacity than twenty gallons: And 'provided further , 
That the proof of such distilled spirits shall not in any case be com¬ 
puted at the time of withdrawal at less than one hundred per centum. 

The act of March 3, 1899, provides: 

That under the conditions and limitations imposed by section fifty 
of the act of August twenty-eighth, eighteen hundred and ninety-fourj 
entitled “An act to reduce taxation, to provide revenue for the sup¬ 
port of the Government, and for other purposes,” allowance for loss 
shall be made as to all distilled spirits produced and originally 
gauged for deposit prior to January first, eighteen hundred and 
ninety-nine, and which lawfully remain in any internal-revenue 
bonded warehouse, after the expiration of the period of forty-eight 
months from the date of original gauge: Provided , however , That the 
allowance for loss herein authorized shall not exceed nine and one- 
half gallons for forty-nine, fifty, fifty-one, and fifty-two months; 
ten gallons for fifty-three, fifty-four, fifty-five, and fifty-six months; 
ten and one-half gallons for fifty-seven, fifty-eight, fifty-nine, and 
sixty months; eleven gallons for sixty-one, sixty-two, sixty-three, and 
sixty-four months; eleven and one-half gallons for sixty-five, sixty- 
six, sixty-seven, and sixty-eight months; twelve gallons for sixty- 
nine, seventy, seventy-one, and seventy-two months; twelve and one- 
half gallons for seventy-three, seventy-four, seventy-five, and seventy- 
six months; thirteen gallons for seventy-seven, seventy-eight, seventy- 
nine, and eighty months; and thirteen and one-half gallons for 
eighty-one, eighty-two, eighty-three, and eighty-four months, and 
no further allowance shall be made. 

Sec. 2. That the allowance for loss herein provided shall be as¬ 
certained by regauge on request of distiller before the expiration of 
eighty-four months from date of original gauge, and shall apply to 
spirits remaining in any internal-revenue bonded warehouse which 
shall have been regauged heretofore under the provisions of section 
fifty of the said act of August twenty-eighth, eighteen hundred and 
ninety-four: Provided , That for the regauge of spirits originally 
gauged for deposit on or before the first day of March, eighteen hun¬ 
dred and ninety-two, the request of the distiller for a regauge, under 
the provisions of this act, may be made at any time before the first 
day of May, eighteen hundred and ninety-nine. 

The act of Januay 13, 1903, provides: 

That all distilled spirits now in internal-revenue bonded ware¬ 
houses, or which may hereafter be produced and deposited in such 
warehouses, shall be entitled to the same allowance for loss from leak¬ 
age or evaporation which now exists in favor of distilled spirits pro¬ 
duced, gauged, and so deposited prior to January first, eighteen hun¬ 
dred and ninety-nine, and subject to the same conditions and limi¬ 
tations. 


158 


The maximum allowance for each of the periods named in said sec¬ 
tion 50, as amended, in the case of a cask or package of 40 or more 
wine gallons capacity, may be stated in tabular form, as follows: 

Not to exceed— 

1 proof gallon for 2 months or part thereof. 

14 galls, for more than 2 mos. and not more than 4 mos. 

2 galls, for more than 4 mos. and not more than 6 mos. 

24 galls, for more than 6 mos. and not more than 8 mos. 

3 galls, for more than 8 mos. and not more than 10 mos. 

3J galls, for more than 10 mos. and not more than 12 mos. 

4 galls, for more than 12 mos. and not more than 15 mos. 

44 galls, for more than 15 mos. and not more than 18 mos. 

5 galls, for more than 18 mos. and not more than 21 mos. 

5J galls, for more than 21 mos. and not more than 24 mos. 

C galls, for more than 24 mos. and not more than 27 mos. 

64 galls, for more than 27 mos. and not more than 30 mos. 

7 galls, for more than 30 mos. and not more than 33 mos. 

74 galls, for more than 33 mos. and not more than 36 mos. 

8 galls, for more than 36 mos. and not more than 40 mos. 

84 galls, for more than 40 mos. and not more than 44 mos. 

9 galls, for more than 44 mos. and not more than 48 mos. 

94 galls, for more than 48 mos. and not more than 52 mos. 

10 galls, for more than 52 mos. and not more than 56 mos. 

104 galls, for more than 56 mos. and not more than 60 mos. 

11 galls, for more than 60 mos. and not more than 64 mos. 

114 galls, for more than 64 mos. and not more than 68 mos. 

12 galls, for more than 68 mos. and not more than 72 mos. 

124 galls, for more than 72 mos. and not more than 76 mos. 

13 galls, for more than 76 mos. and not more than 80 mos. 

134 galls, for more than 80 mos. and not more than 84 mos. 

The loss to be allowed on casks or packages of less than 40 wine 
gallons capacity and not less than 20 wine gallons capacity must not 
exceed one-half the amount allowed on casks or packages whose capac¬ 
ity is 40 wine gallons and upward, and no allowance must be made 
for the loss in casks or packages of less capacity than 20 wine gallons. 

It will be seen that where the loss of spirits while in warehouse 
does not exceed the statute limit the tax is to be collected on the proof- 
gallon contents, as shown by the regauge. 

Where the loss exceeds the statute limit the tax will be collected on 
the number of proof-gallons contents, as shown by the original gauge, 
less only the loss allowed by law. 


159 


EXAMPLES. 

1. A package the original contents of which were 50 wine gallons, 
50 proof gallons, and 50 taxable gallons, when regauged, after remain¬ 
ing in warehouse thirty-five months, is found to contain 45 wine gal¬ 
lons and 45 proof gallons. The taxable gallons in this case are 45, 
and the tax-paid stamp will represent 45 gallons. 

2. A package the original contents of which were the same as the 
foregoing, remaining in warehouse the same length of time, is found 
upon regauge to contain only 40 wine and 40.40 proof gallons. The 
maximum allowance in this case is 7.50 proof gallons. Deducting this 
amount from the original proof gallons leaves 42.50 proof gallons and 
42.5 taxable gallons. 

3. A package, original contents and period in warehouse same as 
foregoing, is found on regauge to contain 46 wine gallons, 45.08 proof 
gallons. The taxable-gallons contents are 46. 

4. A package, original contents 45 wine gallons, 45.45 proof gal¬ 
lons, 45.4 taxable gallons, upon regauge, after remaining in ware¬ 
house 30-f months, is found to contain 37 wine gallons, 37.37 proof 
gallons. The loss in this case being excessive, the loss allowed by 
law (7 gallons) being deducted from the original proof-gallons con¬ 
tents gives 38.45 proof gallons, or 38.4 gallons on which the tax is to 
be paid. 

5. A package of 38 gallons capacity, containing originally 52.50 
proof gallons, when regauged, after remaining in warehouse. 3+ 
months, is found to contain 51.43 proof gallons. The statute permits 
an allowance of only 0.75 of a proof gallon for the loss in this case, 
as the capacity of the cask is less than 40 wine gallons; therefore the 
tax should be paid on 51.75 proof gallons, the taxable gallons being 
51.7. 

It will be observed that in cases where the loss exceeds the statute 
limit the proof gallons upon which tax is due may be ascertained by 
deducting the maximum allowance from the actual loss and adding 
the remainder to the present proof-gallons contents. Thus, referring 
to example No. 2 above, 9.60—7.50=2.10; 2.10-{-40.40=42.50. 

MARKING, BRANDING, AND STAMPING OF CASKS OR PACKAGES OF DISTILLED 
SPIRITS ON ENTRY INTO DISTILLERY WAREHOUSE. 

All spirits produced by distillers who use other materials than 
apples, peaches, grapes, pears, pineapples, oranges, apricots, berries, 
prunes, figs, or cherries must be entered in the distillery warehouse 
and duly withdrawn therefrom as provided by law. 

When such spirits are drawn from the receiving cisterns, they must 
be weighed, proved, and marked, and the gauger will affix the distil¬ 
lery warehouse stamp, and cancel the same in the manner hereinafter 


160 


directed, in the presence of the storekeeper. He will also legibly cut 
upon the bung stave, on the side of the bunghole nearest the “ stamp 
head,” and in the order named, the gross weight, tare, net weight, 
wine gallons, proof, and proof-gallons contents, fractions of gallons 
being retained in all instances. Where spirits are 100 proof, the num¬ 
ber of proof gallons need not be cut on the cask. 

At the same time the gauger will cut the capacity of the cask—to 
be determined as indicated below—on the bung stave immediately 
adjacent to the bunghole and on the side thereof opposite to the stamp 
head . 

Where approved cylindrical metal barrels or drums are used having 
a wooden head superimposed on one of the metal heads, being secured 
to the latter by bolts countersunk into the wood, the warehouse stamp 
will be affixed over one of the openings containing a bolt, and the tax- 
paid (or export) stamp over the other, such openings being filled with 
a wooden plug or other suitable material. In such case the marks and 
brands required on the head of a wooden barrel will be placed above 
and to the left of the stamps, and the marks and brands required on 
the bung stave of a wooden barrel will be placed to the right of the 
stamps, the entry marks being placed opposite the warehouse stamp 
and the withdrawal marks opposite the tax-paid (or export) stamp. 

(For transfer of alcohol for denaturation see Regulations No. 30.) 

ascertainment of capacity of casks on original inspection. 

The capacity of casks must be ascertained, marked, and reported in 
all instances when original official inspection of spirits is made by 
weighing. Casks will be filled to the bunghole when weighed for the 
ascertainment of capacity. 

The proof of the spirits in each cask or package must be determined 
with great care immediately preceding such weighing, and if overflow 
of spirits occurs during this determination, by reason of the insertion 
of a pipette or thief into the cask, the same will be replaced prior to 
weighing for capacity. 

The weight of the contents of the full cask having been ascertained, 
fractions of the resulting wine gallons will be treated as follows in the 
ascertainment of capacity: Any fraction less than .0.25 will be 
dropped; if 0.25, or any intermediate fraction to and including 0.75, 
it will be called one-half gallon; if above 0.75 to the unit it will be 
called a whole gallon. 

Correction of volume will be applied in inverse order to apparent 
wine-gallons capacity, thus determined, to arrive at the true capacity 
of the cask at 60° F. (See instructions as to “ Ascertainment of the 
capacity of casks,” in the Gaugers’ Weighing Manual.) 

To illustrate: If a barrel of spirits having an indication of 115 and 
a temperature of 93 is found, when full, to have a net weight of 348 


161 


pounds, the resulting wine gallons at that temperature are found by 
the table to be 44.75, to be called 44^ under the above rule. The cor¬ 
rection of volume is 1.6, and amounts to half a gallon in this instance. 
(See Table No. 3 of the Gaugers’ Manual.) 

Applying this correction in inverse order gives the capacity of the 
cask as 45 gallons. In case the temperature should be below 60° F., 
the correction of volume should be subtracted for reason recited on 
page 11 of the Gaugers’ Weighing Manual. 

After the capacity of the cask has been ascertained the distiller will 
be permitted to adjust the wantage, strict compliance with the regu¬ 
lations in the Gaugers’ Manual as to exact wantage being required; 
after which the contents of the cask will be determined by weighing. 

This adjustment of the wantage and reweighing for the ascertain¬ 
ment of contents w T ill be performed immediately after the capacity has 
been ascertained, and, whenever practicable, it may be done without 
previously removing the cask from the scales. In case a cask can 
not be completely filled as above indicated, because the distillery cis¬ 
terns are exhausted, in case of suspension of operations at the distil¬ 
lery, the contents will be ascertained by weighing as usual, but the 
capacity thereof must be determined by the use of the gauging rod. 
All instances of this kind will be explained on the gauger’s return 
by a footnote to the effect-that the cask, mentioning its number, was 
insufficiently filled. 

On regauge for withdrawal of such a partially filled cask or pack¬ 
age the gauger will make a similar footnote on his report of gauge, 
and will in addition note thereon the capacity of the cask or package 
if any loss on account of leakage or evaporation is claimed. 

In case the contents of such a package on regauge is less than 10 
taxable gallons, and its taxable contents can not be represented by 
the proper tax-paid stamps and coupons, a tax-paid stamp for 10 
gallons will be purchased and attached to the package, and the differ¬ 
ence between the value of the stamp and the tax on the package will 
be reported on Form 93 c, line 9, of recapitulation, as “ Stamp issued 
in excess,” which amount will be refunded to the distiller purchasing 
such stamp on application. 

MARKING AND BRANDING THE HEAD OF THE CASK. 

At the same time that the gauger cuts the marks on the bung stave, 
as above directed, he will also cut with a die or burn upon the head 
of each cask its serial number in figures large enough to be easily 
read, and the serial number of the distillery-warehouse stamp in like 
legible figures immediately under the serial number of the cask. The 


162 


word “ cask,” when used alone herein, will be taken to include any 
package used to contain distilled spirits. 

Fractions of gallons must be ascertained, marked, and reported in 
all cases, but the tax will be collected on the fraction of a gallon of 
one or more tenths, the hundredths of a gallon being excluded. 

The serial number for every distillery must begin with number one 
(No. 1), with the first cask deposited, and no two or more casks ware¬ 
housed at the same distillery may be marked with the same number. 

A change in the person or persons operating a distillery will not 
be taken to require a new series of numbers for the packages of dis¬ 
tilled spirits thereafter produced and warehoused at such distillery, 
but the established series will be continued without regard to a change 
in person. 

The gauger will also mark or brand, with a die, stencil, or branding 
iron, on the head of the cask, in letters not less than 1 inch in length, 
the name of the spirits, which mark or brand will be varied to suit 
whatever kind is contained in the package, according to the following 
classification: 

1. High wines .—That which is practically the first product of dis¬ 
tillation in which the substances congeneric with ethyl alcohol have 
not been transformed or their properties otherwise partially elimi¬ 
nated so as to convert them into any form of potable spirits, will be 
marked “ high wines.” 

2. Alcohol .— ( a ) All forms of distilled spirits from which the 
substances congeneric with ethyl alcohol have been removed for prac¬ 
tical purposes altogether, and which have been heretofore marked as 
“ pure, neutral, or cologne spirits,” will be marked “ alcohol.” (b) 
That product which has been commercially known as “ alcohol ” 
from which these congeneric substances have not been removed will 
be marked “ commercial alcohol.” 

3. Spirits , as the case may be .—Those products of distillation in 
which, by reason of the original material used and the methods of 
distillation employed, the characteristic substances congeneric with 
alcohol have been retained, which differentiate them into various 
forms of potable spirits—such as whisky, brandy, rum, and gin—will 
be marked with the particular name of such potable spirit, as the 
case may be, without other description and without the addition of 
any adjective or descriptive word whatsoever; and the name of such 
particular spirit will be used even although when any of such spirits 
may be drawn from the receiving cisterns into casks certain con¬ 
generic products of distillation have not been changed by aging or 
otherwise, so as to bring them to the potable form in which they are 
ultimately to be placed upon the market, provided such spirits have, 
before being drawn into the casks, been diluted to potable proof so 
as to then constitute a crude form of potable spirits. 


163 


He will also cut or burn the date of inspection, so that the head of 
the cask will appear as follows: 



The date of original inspection, the distiller’s name, district, and 
State, and the registered number of the distillery must be burned 
or imprinted in black letters and figures sunk into the wood, upon 
the heads of all distiller’s packages which remain in warehouse longer 
than six months, and if said marks were cut at time of entry they 
must be burned or imprinted in the manner above specified upon 
removal made after the expiration of six months. 

In the case of spirit packages, the heads of which are in three parts, 
the Government stamp or stamps required to be placed upon the 
same will be affixed across a joint or joints of the head in such a 
manner that each stamp shall rest over a joint at about the middle of 
the stamp, and so that the center piece of the head may not be removed 
without destroying the stamp or stamps. 

Where both warehouse and tax-paid stamps are required, the ware¬ 
house stamp will be fixed across one joint and the tax-paid stamp 
across the other. 

Whenever a stamp is affixed to a cask or package of distilled spirits 
it must immediately be canceled. For this purpose the gauger will 
use a stencil plate of brass or copper, in which will be cut not less 
than five fine parallel waved lines, long enough to extend not less 
than three-quarters of an inch beyond each side of the stamp, on the 
















164 


wood of the cask; and the name of the gauger must be cut on one end 
of the plate, and his title, viz, “ U. S. Gauger,” and district on the 
other end, perpendicular to the lines. 

GAUGING AND MARKING SPIRITS IN WAREHOUSE UPON REQUEST OF 

DISTILLER. 

Whenever the distiller makes due request to have gauged any dis¬ 
tilled spirits deposited in distillery warehouse, special bonded ware¬ 
house, or general bonded warehouse, as provided under section 50 of 
the act of August 28, 1894, as amended, gauging officers, when so 
directed by the collector, will make a careful regauge of the spirits 
embraced in the distiller’s request, and cut on the bung stave of each 
cask, on the side of the bunghole opposite to the stamp head, and in 
the order named, the gross weight as then ascertained in pounds and 
half pounds, the present weight of the empty cask (reference being- 
had in this connection to the “ schedule of increase in tare ”), the net 
weight, the present actual wine gallons thus determined, the proof of 
the spirits, and the proof gallons resulting therefrom. 

(For instructions as to marking the bung stave where the capacity 
of the package was determined and cut when originally weighed, see 
page 170 herein.) 

In case the contents of the cask were originally determined by the 
use of the gauging rod, there will be cut on the bung stave the full 
capacity of the cask, with the present wantage immediately beneath, 
and underneath this the correction of volume, followed by the sign 
plus ( + ) or minus (—) as the case may be. Following the above 
will be cut the present proof and proof-gallons contents, retaining the 
fractions of gallons to two decimal places. Where, however, the 
proof of the spirits is exactly 100 at the time of the regauge the num¬ 
ber of proof gallons need not be cut on the bung stave. 

Where the distiller does not request a regauge before the expiration 
of the time prescribed by law, tax must be collected on the quantity 
contained in each cask or package as shown by the original gauge. 

MARKING AND STAMPING CASKS OF SPIRITS ON REMOVAL FROM DISTILLERY 
WAREHOUSE TO GENERAL BONDED WAREHOUSE. 

When distilled spirits made from materials other than fruit are 
removed from distillery warehouse to any general bonded warehouse 
under the provisions of sections 52 and 53 of the act of August 28, 
1894, the gauger will, on receipt of instructions to that effect from the 
collector, make such examination of the spirits as is necessary to 
determine whether there is a noticeable discrepancy between the 
actual contents of each cask and the quantity shown by the marks 
and brands thereon. 


165 


If, on such examination, it appears that an excessive loss of spirits 
has occurred, or if the officer has reason to suspect that the packages, 
or their contents, have been tampered with, he will immediately make 
a careful and full gauge and inspection of the spirits to ascertain the 
deficiency or excess, and if the discrepancy is thus found to exceed 
that attributable to natural causes, the facts will be reported in detail 
to the collector, who will not permit packages showing excessive loss 
or gain to be transferred, but instead will take the action directed in 
article 32 of Regulations No. 20. Where the loss of spirits from any 
cask or package exceeds by 50 per cent the loss provided for in section 
50 of the act of August 28, 1894, as amended, and is not less than 3 
gallons, such loss will be deemed excessive. 

Prior to the removal from the distillery w T arehouse the gauger will 
cut or burn upon the stamp head of each cask the name of the dis¬ 
tiller and the district. He will also affix upon the head the general 
bonded warehouse stamp, cancel the same in the manner required, 
and legibly and durably cut or burn the number of said stamp, the 
number and location of the warehouse to which the spirits are to be 
removed, and the date of removal. 

The brand which is to accompany the transfer stamp may be 
abridged as follows: 

Withdrawn Sept. 1, 1908. 

To G. B. W., 4, 7th Dist., Ky. 

G. B. W. S., 478. 

The general bonded warehouse stamp and the accompanying 
brands will be so applied to the stamp head as to leave sufficient 
space thereon for the application of the tax-paid stamp and the 
brands accompanying the same. In case, however, this should be 
impracticable in any case, the general bonded warehouse stamp and 
the brands pertaining to the transfer may be applied to the head 
opposite to the stamp head. 

ON ARRIVAL OF SPIRITS AT THE GENERAL BONDED WAREHOUSE. 

Under the provisions of section 54 of the act of August 28, 1894, 
when spirits removed from the distillery warehouse arrive at the gen¬ 
eral bonded warehouse the same will be received and carefully exam¬ 
ined by the storekeeper or storekeeper-gauger in charge, and in case 
there is a noticeable discrepancy between the actual contents and 
the quantity stated in the marks and brands on the packages, or the 
officer in charge has reason to believe the packages or contents have 
been tampered* wdth, if a storekeeper-gauger, he will immediately 
make a complete gauge and inspection of the spirits to ascertain the 
deficiency or excess, or if a storekeeper he will report the fact to the 
collector, who will detail a gauger to ascertain the deficiency or 


166 


excess, which shall in either case be noted on the storekeeper’s receipt 
(part 4, Form 352). (See art. 38 of Regulations No. 20.) 

As the officer at the general bonded warehouse is held responsible 
for the accuracy of his receipt given in this particular it is expected 
that in all cases his examination of the spirits will be sufficiently 
thorough to determine beyond doubt as to the actual shortage or 
discrepancy, if any, in case of each package received. 

After the spirits have been examined or gauged, as above directed, 
the officer in charge of the general bonded warehouse will indorse his 
receipt upon each copy of the entry—part 4 of Form 352—and at once 
forward the same, with the accompanying papers, to the collector, to 
be disposed of as hereinbefore noted. 

REMOVAL OF SPIRITS FROM ONE GENERAL BONDED WAREHOUSE TO 

ANOTHER. 

Section 55 of the act of August 28, 1894, provides that any spirits 
may be withdrawn once, and no more, from one general bonded ware¬ 
house for transportation to another general bonded warehouse, and 
when so withdrawn shall have affixed thereto another general bonded 
warehouse stamp, indicative of such intention; said withdrawal, 
transfer, etc., to be under such regulations as the Commissioner of 
Internal Revenue, with the approval of the Secretary of the Treas¬ 
ury, may from time to time prescribe. 

Before the removal of the spirits the officer in charge will make 
such an examination of the cask and its contents as to be assured 
that the same have not been tampered with and that there is neither 
an excess nor a deficiency of spirits. In case such an examination 
discloses a surplus or an excessive loss of spirits to the extent herein¬ 
before indicated, in the case of any cask, such cask will be fully and 
carefully gauged and inspected. 

When spirits are to be removed, as above, the officer in charge of 
the general bonded warehouse from which the spirits are to be with¬ 
drawn will, upon the receipt of the proper instructions from the col¬ 
lector, affix to each cask to be withdrawn a stamp indicative of such 
intended removal, in addition to the one affixed upon removal from 
the distillery warehouse. He will also cancel such stamp in the man¬ 
ner required, and legibly and durably cut or burn on the head of the 
cask the date of the transfer, the number and location of the general 
bonded warehouse to which the spirits are to be transferred, and the 
number of the rewarehousing stamp. This additional brand may be 
abbreviated as follows: 

# 

Transferred Sept. 1, 1908. 

To G. B. W., 6, 5tli Dist., Ky. 

G. B. R. W. S., 445. 


167 


As in case of original transfer, the rewarehousing stamp and the 
accompanying brands will be so applied to the stamp head of the cask 
as to leave sufficient space for the application of the tax-paid stamp 
and the brands pertaining thereto. If in any case this course is im¬ 
practicable, the rewarehousing stamp and the brands connected there¬ 
with will be applied to the head of the cask opposite to the stamp 
head. 

Upon delivery of the spirits the officer in charge will indorse on 
Form 352 his certificate, as prescribed in article 50 of Regulations No. 
20, stating therein the shortage or discrepancy, if any, as to the pack¬ 
ages. He will then forward Form 352 to the collector, or, if so di¬ 
rected by that officer, to the officer in charge of the general bonded 
warehouse to which the spirits are consigned. The collector’s order 
and permit and accompanying papers will be substantially in the 
same form, and will be disposed of in the same manner as provided 
in case of removal from distillery warehouse to general bonded ware¬ 
house. 


UPON ARRIVAL OF SPIRITS AT THE SECOND WAREHOUSE. 

When the spirits are delivered to the second general bonded ware¬ 
house the proceedings will be the same as directed herein in case of 
the reception from a distillery warehouse. The officer in charge will 
make the same careful examination of the spirits on arrival, and 
determine and report any existing deficiency or excess, as in the 
former case. 

GAUGING, MARKING, AND STAMPING SPIRITS ON WITHDRAWAL FROM 
WAREHOUSE ON PAYMENT OF TAX. 

A condition of the bonds required of distillers of spirits by section 
49 of the act of August 28, 1894, is for the payment of taxes at the 
rate imposed by said act, and before removal from warehouse and 
within eight years from date of original entry, or date of original 
gauge, as the case may be. 

Upon withdrawal of spirits from warehouse the same will be care¬ 
fully regauged and inspected where they have been previously 
regauged in warehouse on request of the distiller. 

The taxes will be collected on the quantity contained in each cask 
or package as shown by the original gauge where the distiller does 
not request a regauge before the expiration of the time allowed by law 
therefor from the date of original entry or gauge, or when a larger 
quantity is found by the final gauge than was shown by the first 
regauge. 

In case the spirits have not been regauged in warehouse on request 
of the distiller, as provided herein, no regauge will be required upon 


168 


withdrawal from warehouse unless upon an examination, which the 
gauger is expected to make, it appears that the spirits have been tam¬ 
pered with, in which case the spirits will be detained in warehouse, a 
full and complete regauge made, and the facts reported to the col¬ 
lector for instructions. 

When spirits are withdrawn from warehouse on payment of the 
tax, the tax-paid stamp must be affixed and canceled, and upon the 
head of each cask must be cut or burned the registered number of the 
distillery, the name of the distiller, the district and State, the date of 
the payment of the tax, and the number of the tax-paid stamp, and 
the gauger will also mark on the head of the cask the number of proof- 
gallons contents. 

The date of original inspection, the distiller’s name, district, and 
State, and the registered number of the distillery must be burned or 
imprinted in black letters and figures sunk into the wood upon the 
heads of all distillers’ packages which remain in warehouse longer 
than six months, and if said marks were cut at the time of entry they 
must be burned or imprinted in the manner above specified upon re¬ 
moval made after the expiration of six months. 

The following cut illustrates the marks, brands, and stamps re¬ 
quired to be applied to the head of the cask when regauged on with- 
draAval from distillery warehouse on payment of tax: 



In case a previous regauge has been made on request of the distiller 
and marks cut on the bung stave on the side of the bunghole opposite 

















169 


to the stamp head, as provided herein, the marks showing the result 
of this second regauge will be cut on the stave to the right of the 
bung stave, on the side of the bunghole nearest the stamp head, in 
the manner directed herein under the head of “ Gauging and marking 
spirits in warehouse upon request of distiller.” 

When there is no regauge, the gauger will cut or burn on the 
“ stamp head ” the number of proof gallons as determined by the 
original gauge. 

All of the branding required to be applied to the head, except the 
date, number of proof gallons, and the number of the stamp, may be 
burned or imprinted in black letters and figures sunk into the w T ood 
upon the cask prior to its being filled at the cisterns. The letters 
and figures constituting any brand or mark must in all cases be large 
enough to be easily read. 

When spirits are regauged on withdrawal from warehouse, the 
stamp must be affixed by the gauger by whom the regauge was per¬ 
formed, except where it is found to be inconvenient, if not impractica¬ 
ble, for him to do so by reason of his having been transferred to a 
remote part of the district before the spirits are stamped, in which 
case the tax-paid or export stamps, as the case may be, will be affixed, 
and their number and date of payment of tax or date of withdrawal 
may be cut or burned upon the head of the cask by the succeeding 
officer; provided, however, that only the officer who actually performs 
the regauge shall return the same on Forms 108 and 150, and no 
charge shall be made by the gauger who merely affixes the stamps and 
does the cutting or branding above indicated. Where this course is 
pursued, the officer who makes the regauge will be expected to perform 
all the marking or branding required by the regulations, and in apply¬ 
ing his name and office he will leave a sufficient space between the two 
for the attachment of the stamp in the manner indicated in the case of 
fruit brandy on page 176 herein. 

It is to be understood from the above that in no case will the gaug¬ 
ing officer making the regauge, and transferred before stamps are 
affixed, be required to return to the warehouse and attach the stamps 
where such action involves an expense to the Government and it is 
at all possible for the officer w T ho succeeded him to do the work. 

For instructions as to affixing stamps where the head of the barrel 
is in three parts, see page 163 herein. 

INSPECTION OF SPIRITS IN WAREHOUSE, OR UPON WITHDRAWAL THERE¬ 
FROM, WHEN IN PACKAGES THE CAPACITY OF WHICH HAS BEEN DETER¬ 
MINED BY WEIGHING. 

Whenever distilled spirits deposited in any distillery warehouse, or 
general or special bonded warehouse, are inspected in such warehouse 
upon the request of the distiller, or upon withdrawal from ware- 


170 


house, or at such other time as the Commissioner of Internal Revenue 
may direct, and the capacity of the packages containing the same 
was ascertained, marked upon the package, and reported as by regu¬ 
lations required, then, in such case, the regauge of such package may 
be made as follows: 

The gauging officer will determine by the use of the prescribed 
wantage rod the ullage or wantage, if any, existing in the cask, using 
the utmost care to ascertain the same with precision. The wantage, 
if any be found, will then be deducted from the capacity of the cask 
or package in wine gallons, which was determined when the cask or 
package was filled, and cut on the bung stave immediately adjacent 
to the bunghole, and on the side thereof opposite to the stamp head. 
The true proof of the spirits will then be taken, and to the wine gal¬ 
lons remaining after the deduction of the wantage from the capacity 
will then be applied the proper correction of volume, if any, for that 
quantity of spirits, as shown in Table 3 of the Gaugers’ Manual. 
From the net wine gallons will then be found the proof-gal Ions 
contents. 

The several items of the inspection will then be cut upon the bung 
stave, below the capacity, in the usual order, namely, wantage, cor¬ 
rection of volume, proof, and proof-gallons contents, and will be 
returned accordingly. In column 3 of Form 59 the gauger will enter 
the words, “ Capacity taken as cut on bug stave.” 

Gauging officers will observe the figures denoting the capacity of 
the cask with care, to see if the same are clearly and perfectly legible 
and trustworthy, or if they have any appearance of having been 
altered or in any manner tampered with since they were originally 
cut. Unless these figures are entirely satisfactory, the gauge will be 
made by reweighing in the prescribed manner. 

The gauge will be made by reweighing also whenever the distiller 
requests that it be so done, or whenever the collector, for any reason, 
deems such course advisable. 

Collectors will order the reinspection to be by weighing at any dis¬ 
tillery where it is found that the reinspection by the use of the want¬ 
age rod is being used for purposes detrimental to the revenue. 

MARKING AND STAMPING SPIRITS ON WITHDRAWAL FROM A BONDED WARE¬ 
HOUSE FOR EXPORTATION. 

When spirits are withdrawn from a bonded warehouse and intended 
for export, the gauger, in addition to affixing and canceling the export 
stamp, will cut or burn ° upon the head of the cask, in letters or figures 
not less than half an inch in length, the registered number of the dis- 

° See page 168 as to branding marks on casks remaining in warehouse over six 
months. 



171 


tillery, the name of the distiller, the district and State in which the 
distillery warehouse is located, the date of withdrawal, the number of 
export stamp, and the name of the port or place from which the spirits 
are to be exported, and the number of proof-gallons contents as then 
ascertained will be marked on the head. The gauger will also cut on 
the bung stave, on the side of bunghole opposite to the “ stamp head,” 
where that space is available, otherwise on the stave to the right of 
the bung stave on the side of the bunghole nearest the stamp head, 
the result of the regauge in the manner directed herein under the 
head of “ Gauging and marking spirits in warehouse upon request of 
distiller.” Such cutting, marking, or branding on the head will be as 
follows: 

D. N. 125. 

John Smith & Co., 

Distillers, 

6th Dist., O. 

Withd’n Jan. 10,1895. P. G. 44. 

Ex. Stamp 385. 

To New York for export. 

When the withdrawal for export is from a general or a special 
bonded warehouse, the number of the warehouse and the district in 
which it is located w r ill also be inserted before the description of the 
export stamp, as follows: 

G. B. W. (or S. B. W.) 1,1st Dist, Cal. 

Ex. Stamp 385. 

To New York for Export. 

For manner of marking distilled spirits exported in inclosed me¬ 
tallic cans, see Regulations, No. 29, articles 9 to 12. 

MARKING ANI> STAMPING SPIRITS ON CHANGE OF PACKAGE IN WARE¬ 
HOUSE FO? EXPORTATION. 

When a change of package of distilled spirits is made in bonded 
warehouse for exportation, the gauger will affix the export stamp to 
the head of each of the new casks and cancel the same. 

He will also legibly and durably cut or burn on the head of each 
cask, in letters and figures not less than one-half inch in length, 
the date of inspection, and mark the kind of spirits as described on 
Form 240, when deposited, the date of withdrawal, the number of 
the export stamp, and the port to which the spirits are to be shipped 
for export. 

There shall also be cut or burned on the head of the cask, at or 
before the time of filling thereof, the registered number of the distill¬ 
ery, the name of the distiller, and the district and State where such 
spirits were produced. 


172 


The gauger will also cut upon the bung stave of the cask the re¬ 
sult of the regauge in the manner directed herein under the head of 
u Gauging and marking spirits in warehouse upon request of dis¬ 
tiller,” and on the head the number of proof gallons, and also the 
words “ From cask ” and the figures denoting the serial number of 
the cask from which the contents of the new cask were obtained, and 
the date of its original inspection. 

The following cut illustrates the marks, brands, and stamp to be 
applied to the head of the new cask when change of packages is made 
for exportation: 



In case the new package is filled from two or more old packages, 
the serial numbers will be placed beneath the w T ords “ From casks,” 
and beneath each other in the order in which the old packages con¬ 
tributed in quantity of spirits to the filling of the new package, so 
that the first serial number will be taken from the old package which 
furnished the largest quantity of spirits to the new package. Tlie 
second number will represent the package contributing the second 
largest quantity of spirits, and so on. 

In case the change is made in a general or a special bonded ware¬ 
house, the designation of the warehouse by number and district will 
also be given, abbreviations as in the following example being used, 
viz: “ G. B. W. (or S. B. W.) 1, 1st Cal.” 














173 


That portion of the brand at the foot of the above diagram com¬ 
mencing “ For export ” is to be applied by the customs gauger at the 
port of entry. (See article 94 of Regulations, No. 29.) 

MARKING AND STAMPING SPIRITS ON WITHDRAWAL FROM BONDED WARE¬ 
HOUSE FOR TRANSFER TO MANUFACTURING WAREHOUSE. 

When distilled spirits are withdrawn from bonded warehouse for 
transfer to manufacturing warehouse under the provisions of section 
20, act of March 1, 1879, as amended by act of May 28, 1880, in addi¬ 
tion to affixing the export stamp, the gauger will cut with a die, or 
burn upon each cask,® in letters and figures not less than half an inch 
in length, the registered number of the distillery, the name of the dis¬ 
tiller, the district, the date of the withdrawal, the number of the 
export stamp, and the name of the port to which the spirits are con¬ 
signed for deposit in a manufacturing warehouse; and the number of 
proof gallons contents, as then ascertained, must be marked on the 
head and cut on the bung stave, on the side of the bunghole opposite 
to the stamp head. 

The brand may be abridged in the following manner: 

D. N. 125. 

John Smith & Co., 

Distillers, 

6th Dist., O. 

Withd’n Jan. 10, 1895. P. G. 44. 

Ex. Stamp 385. 

To New York for deposit in M’f’g W. H. 

When the withdrawal is from a general or a special bonded ware¬ 
house the number and district of the warehouse should be given in 
the brand. 

The brand may be abridged as follows: 

D. N. 125. 

John Smith & Co., 

, Distillers, 

6th Dist., O. 

Withd’n Jan. 10, 1895. P. G. 44. 

G. B. W. (or S. B. W.) 1, 1st Dist,, Cal. 

Ex. Stamp 385. 

To New York for deposit in M’f’g W. H. 


o see page 168 as to branding marks on casks of spirits remaining in ware¬ 
house over six months. 




174 


MARKING PACKAGES ON WITHDRAWAL OF ALCOHOL FROM BONDED WARE¬ 
HOUSE FOR SCIENTIFIC PURPOSES, OR OF ANY DISTILLED SPIRITS FOR 

USE IN THE MANUFACTURE OF SUGAR FROM SORGHUM, OR FOR THE USE 

OF THE UNITED STATES, FREE OF TAX. 

When alcohol is withdrawn from a distillery warehouse or general 
bonded warehouse for scientific purposes under the provisions of 
section 3297, Revised Statutes, or when any distilled spirits are with¬ 
drawn from a bonded warehouse for the use of the United States 
under section 3464, or for use in the manufacture of sugar from 
sorghum under the act of March 3, 1891, the gauger, in addition to 
marking, cutting, and branding the marks usually required on with¬ 
drawal of spirits from warehouse, will legibly and durably mark on 
the head of each cask, in letters and figures not less than half an inch 
in length, the number of proof gallons as then ascertained, the date 
of the permit granted by the Secretary of the Treasury for such with¬ 
drawal, the object for which the withdrawal is made, and his name, 
title, and district. 

Such additional marking will be as follows: 

Withdrawn under permit issued June 1, 1894, 

For (state purpose). 

P. G. 44. 

Richard Roe, 

U. S. Gauger, 

5th Dist., Ill. 

(For marking packages containing alcohol withdrawn for denatura- 
tion, see No. 30.) 

On change of package in distillery warehouse or general or special 
bonded warehouse to prevent leakage . 

When it becomes necessary, in order to prevent leakage or wastage, 
to change a package in a bonded wrehouse, i. e., to draw off the con¬ 
tents of a cask bearing the distillery-warehouse stamp and the accom¬ 
panying marks and brands, and to place the same in a new cask, the 
spirits must be again inspected and gauged, the number of wine and 
proof gallons must be cut upon the bung stave, and the gauger will 
legibly mark, in a durable manner, upon the head of the cask, his 
name, office, district, and name of the spirits. At the same time he 
will cut or burn on the head of the cask the name of the distiller, the 
registered number of the distillery where such spirits were produced, 
the date of original inspection, and the serial number of the original 
package, together with the serial number of the warehouse stamp, 
and directly beneath this latter the number of proof gallons originally 
contained in the cask, so that the head of the cask will appear as 
shown in the following illustration: 


175 



In cases where, by reason of the nature and quality of the spirits, 
their market value would be greatly depreciated by destroying their 
two-stamp character, and the course prescribed above is therefore un¬ 
desirable, the distiller may make application under section 3315, Re¬ 
vised Statutes, for the restamping of the new package, as provided 
in the regulations on pages 115 and 116 herein. In such cases the col¬ 
lector of the district, upon being duly authorized by the Commissioner 
of Internal Revenue so to do, will issue a new distillery warehouse 
stamp to cover the new package, and will write in red ink across the 
face of such new stamp, under his hand and seal, and also across the 
face of the stub thereof, the words “ Issued in place of warehouse 
stamp No. -,” filling in the blank with the number of the ware¬ 

house stamp originally affixed to the package. The spirits in the new 
package must be again inspected and gauged, the number of wine and 
proof gallons must be cut upon the bung stave, and the gauger will 
legibly mark in a durable manner upon the head of the cask the name 
of the spirits. At the same time he will cut or burn on the head of 
the cask the name of the distiller, the registered number of the dis¬ 
tillery where such spirits were produced, the date of original inspec¬ 
tion, and the original serial number of the package preceded by the 
words “ From cask No. —,” together with the serial number of the 
new warehouse stamp, and directly beneath this latter the number of 
proof gallons originally contained in the package. The new stamp 
will be affixed to the head of the package in the same relative position 















176 


as an original warehouse stamp and will be duly canceled by the 
gauger or storekeeper-gauger on duty at the distillery when the 
change is made, who will see that the marks conform in all respects to 
the above requirements. 

FRUIT BRANDY. 

Marking , branding , and stamping at distilleries. 

On gauging fruit brandy the gauger will cut upon the bung stave 
the number of wine gallons, the proof, and number of proof gallons of 
spirits contained in each cask,® and upon the head of the cask will be 
cut or burned the registered number of the distillery, the name of the 
distiller, the district, the date of inspection, and the serial number of 
the cask. The name of the spirits must be marked or branded upon 
the head of the cask, in letters not less than 1 inch in length, except 
that on packages of less than 20 wine gallons capacity it may be in 
letters not less than three-eighths of an inch in length. 

The gauger will also legibly and durably mark on the head of each 
cask his name, office, and district, which marking must be performed 
in such manner as to admit of the attaching of the tax-paid stamp 
between the name and office. This marking and branding upon the 
head of the cask will be done as follows: 



° In all instances wlien tlie ascertainment of the contents of casks containing 
fruit brandy is required to be performed by weighing, the marks will be cut on 
the bung stave as directed herein, under the head of “ Gauging, marking, and 
branding of distilled spirits, on entry into distillery warehouse,” except brandy 
removed from distilleries for the fortification of sweet wine. 










177 


Upon the receipt from the collector by the distiller of the tax-paid 
stamps for the packages of brandy previously gauged, marked, and 
branded by the gauger, the distiller shall affix the same upon the head 
of each package in a secure and permanent manner by pasting the 
same upon the head of the casks, in the space between the name and 
office of the gauger, and by driving tacks—one in each corner and one 
in the middle of each of the four sides of the stamp—making not less 
than eight in number; and shall cancel the same by writing across the 
face of the stamp his name and the date upon which the stamp is 
affixed, and varnish the stamp with a transparent varnish, so as to 
protect it from removal or damage by exposure; and shall cut or burn 
in legible figures upon the head of each cask the serial number of the 
stamp attached thereto and the date of the payment of the tax. In 
attaching the stamps the distiller must be careful to attach each 
stamp to the cask, the serial number of which is given in the stamp. 

The marking, branding, and stamping to be as follows: 



Marking and stamping packages on removal of fruit brandy from 
distillery to special bonded ivarehouse. 

When fruit brandy is gauged for removal in bond from the distil¬ 
lery to a special bonded warehouse, the gauger will cut on the bung 
stave of each cask, on the side of the bunghole nearest the stamp 
head, the number of wine gallons, the proof, and the number of proof 

50815—08-12 














178 


gallons of spirits contained therein. In case, however, the gallons 
contents are required to be determined by weighing, the result will 
be cut on the bung stave, as directed herein under the head of “ On 
entry into distillery warehouse.” 

He will also cut with a die or burn upon the head of each cask its 
serial number, the registered number of the distillery, the name of 
the distiller, the district, the date of removal, the number of proof 
gallons, the number of the special bonded warehouse stamp, and the 
designation of the warehouse to which the brandy is to be removed, 
and mark or brand thereon the name of the spirits. This brand may 
be abridged as follows: 

No. 53. 

Brandy. 

D. N. 96. 

R. S. Garrett, Distiller, 

1st Dist., Cal. 

Withd’n Apr. 10, 1894. P. G. 44. 

S. B. W. S. 385. 

To S. B. W. 5,1st Dist., Cal. 

The gauger will affix and cancel the special bonded warehouse stamp 
in the same manner as distillery warehouse stamps are affixed and 
canceled. 

The letters and figures, branded or cut as above specified, are to be 
in no case less than half an inch in length, except that the name of the 
contents of packages of not less than 20 wine gallons capacity must be 
in letters not less than 1 inch in length, and on packages of less than 
20 wine gallons capacity in letters not less than three-eighths of an 
inch in length. 

Marking and stamping packages on removal of fruit brandy from one 
special bonded warehouse to another. 

When fruit brandy is removed from one special bonded warehouse 
to another no additional gauging is required unless a noticeable defi¬ 
ciency is observed. A stamp indicative of such intended removal, in 
addition to the one affixed upon removal from a distillery, is required 
to be affixed to each package and canceled by the officer in charge 
before the withdrawal from warehouse. The storekeeper will also 
add to the brand on the head of each cask words and figures indicat¬ 
ing the date of the transfer, the number of the warehouse to which 
transferred, and the number of the rewarehousing stamp affixed. 
This additional brand may be abbreviated as follows : 

Transf. June 10,1894, S. B. R, W, S., 445, to S. B. W,, 6,1st Dist., Cal. 


179 


Marking and stamping packages on ivithdrawal of fruit brandy from 
special bonded icarehouse , tax paid. 

When a cask or package of fruit brandy is withdrawn from special 
bonded warehouse upon payment of the tax on the contents, as shown 
by the original gauge, the gauger on duty at the warehouse shall, in 
the presence of the storekeeper, and before the cask or package has 
left the warehouse, place upon the head thereof, in such manner as to 
cover no portion of any brand or mark prescribed by law already 
placed thereon, the tax-paid stamp, indicating the payment of the tax 
on the spirits in the cask or package, as shown by the original gauge 
at the distillery; and at the time of affixing the tax-paid stamp the 
gauger shall, in the presence of the storekeeper, cut or burn upon the 
cask or package the date of the payment of the tax and the number of 
the stamp. This brand may be abridged in the following manner: 

T. P. Dec. 5, 1894. Stamp, 79976. 

The letters and figures constituting this brand or mark must not be 
less than half an inch in length. The stamp will be canceled in the 
same manner as tax-paid stamps affixed to packages withdrawn from 
distillery warehouse are canceled. 

When fruit brandy is withdrawn from special bonded warehouse 
upon payment of the tax under a regauge, in accordance with the pro¬ 
visions of section 50 of the act of August 28, 1894, as amended, the 
gauger will cut on the bung stave of each cask, on the side of the bung- 
hole opposite to the stamp head, the number of wine gallons, the proof, 
and the number of proof gallons contents found by the regauge. He 
will also affix and cancel the tax-paid stamp and cut or burn on the 
head of the cask the number of the tax-paid stamp, the date of the 
payment of the tax, and the wine and proof gallons contents as then 
ascertained. (For instructions regarding the marking, branding, and 
stamping of fruit brandy on withdrawal from special bonded ware¬ 
house for exportation, for transfer to manufacturing warehouse, or 
for the use of the United States, see regulations relative to with¬ 
drawals from bonded warehouses on pages 170, 173, and 174 herein.) 

[Instructions as to marking and stamping packages on removal of 
brandy from distillery to winery, and from special bonded warehouse 
to winery, are printed in Regulations, No. 28, revised.] 

GAUGING, MARKING, AND STAMPING SPIRITS AFTER RECTIFICATION. 

Section 66 of the act of August 28, 1894, provides : 

That section thirty-three hundred and twenty of the Revised Stat¬ 
utes of the United States, as amended, be further amended by strik¬ 
ing out all after said number and substituting the following: 

“ Whenever any cask or package, containing five wine gallons or 
more, is filled for shipment, sale, or delivery on the premises of any 


180 


rectifier, who has paid the special tax required by law, it shall be 
inspected and gauged by a United States gauger whose duty it shall 
be to mark and brand the same and place thereon an engraved stamp, 
which shall state the date when affixed and the number of proof gal¬ 
lons, and shall be in such form as shall be prescribed by the Commis¬ 
sioner of Internal Revenue with the approval of the Secretary of the 
Treasury: Provided , That when such cask or package is filled on the 
premises of a rectifier rectifying less than five hundred barrels a year, 
counting forty gallons of proof spirits to the barrel, it may be gauged, 
marked, branded, and stamped by a United States gauger, or it may 
be gauged, marked, branded, and stamped by the rectifier, as the 
Commissioner of Internal Revenue, with the approval of the Secre¬ 
tary of the Treasury, may by regulations prescribe.” 

The effect of this section is to require the inspection, gauging, 
marking, and stamping by a United States gauger of spirits put up 
by all rectifiers rectifying 20,000 gallons of spirits or above per an¬ 
num, and to confer upon the Commissioner of Internal Revenue, with 
the approval of the Secretary of the Treasury, the power to prescribe 
whether the casks or packages filled upon the premises of rectifiers, 
other than those above mentioned, shall be gauged, etc., by a United 
States gauger or by the rectifier himself. 

Under the authority thus conferred it is prescribed that, until other¬ 
wise provided, all casks or packages containing 5 wine gallons of 
spirits, or more, filled for shipment, sale, or delivery on the premises 
of duly qualified rectifiers shall be gauged, marked, and stamped by 
United States gaugers. Accordingly, spirits subjected to any of the 
processes of rectification must be put up in casks, inspected, gauged, 
and stamped by a United States gauger, who will observe the require¬ 
ments in this particular as set forth herein under the heading 
“ Notice of completion of the process of rectification and request for 
the stamping of the spirits, on Form 237.” 

Even in case of sweetened spirits under the rule on page 100 herein, 
the gauger who gauges such spirits after rectification will, except at 
houses where the use of the scales is not required in any case, deter¬ 
mine the gross weight of the package and mark the same on the bung 
stave of the barrel, preceding the other marks required by regulation 
to be placed thereon. 

In addition to attaching the stamp for rectified spirits and cancel¬ 
ing the same, the gauger will cut upon the bung stave the result of 
the inspection in the manner directed herein under the head of 
“ Gauging and marking spirits in warehouse upon request of dis¬ 
tiller,” and mark upon the head of each cask with a stencil plate, in 
durable ink, his name and office, the date of inspection, the name of 
such spirits, the proof, the name and place of business of the rectifier, 
and the serial number of the stamp for rectified spirits affixed thereto. 


181 


(«) Marking and stamping sweetened spirits tv hose proof is known. 

Where a rectifier manufactures and puts up spirits entitled under 
the regulations to be regarded as “Apparent proof ” or “ No proof,” 
the gauger in addition to marking the apparent proof on the barrel, 
preceded by the letters “A. P.” or the “ 0 ” indicating “ No proof,” 
will also mark on the head of the package, by cutting or burning, the 
actual proof as stated by the rectifier, preceded by the letters “Act. 
P., ’ and will cut the wine gallons and actual proof gallons on the 
bung stave. The letters “Act.” will be written on the stamp before 
the words “proof gallons,” and the actual proof gallons will be entered 
in the appropriate space. No entry indicating that the spirits are 
“Apparent proof ” or “ No proof ” will be made on the stamp. If a 
change of package is subsequently made, the new stamp issued to 
cover the same must show the actual proof as stated on the slip taken 
from the original stamp. 

(b) Marking and stamping sweetened spirits whose proof is not known. 

Where sweetened spirits whose proof is not known are gauged after 
rectification, the stamps to cover the same will be issued for the wine 
gallons only, and the marks will be made and the stamps will be 
modified as follows: In case of “Apparent proof ” spirits the apparent 
proof will be marked on the head of the cask, preceded by the letters 
“A. P.” and the wine gallons only will be cut on the bung stave. 
The letter “A” will be written on the stamp before the words “ Proof 
gallons,” and the apparent proof gallons will be entered in the appro¬ 
priate space. In case of “ No proof ” spirits the gauger will cut a 
cipher (“ 0 ”) at the place on the head of the barrel where the proof 
should appear. The wine gallons will be entered on the stamp in the 
appropriate space, and the word “ No ” will be written on the stamp 
before the words “ proof gallons,” and the word “ gallons n will be 
stricken out, so that it will read “ No proof.” 

MARKING OF RECTIFIERS 5 PACKAGES. 

Packages of distilled spirits stamped by gauger after rectification 
at a rectifying house shall be marked as indicated in one of the five 
following paragraphs, as the case may require, namely: 

1. Those products of distillation which, without being blended or 
compounded with other spirits, have been so treated as to partially 
transform or otherwise partially eliminate the original congeneric 
substances and bring them to a condition of a particular form of 
potable spirits will be marked with the name of such form of potable 
spirits, as the case may be, as determined under the paragraph num¬ 
bered 3, relating to marking at distilleries. 


182 


2. A mixture of such potable spirits of the same kind will be 
marked “ blended,” followed b t y the particular name of such spirits— 
as, for example, “ blended whisky.” 

3. A mixture of a particular kind of such potable spirits with 
alcohol, provided there is enough of such potable spirits to make it 
a real compound and not the mere semblance of one, will be marked 
as a “ compound of ” such spirit, with the distillate with which it is 
mixed—as, for example, “ a compound of whisky and grain distil¬ 
late ; ” or, if preferred, with the particular name of such spirit “ com¬ 
pounded with ” such other distillate—as, for example, “ whisky , 
compounded with grain distillate.” 

4. Alcohol, commercial alcohol, or high wines, which have been 
manipulated by the aid of artificial flavors, colors, or extracts, or 
otherwise, so as to resemble some particular kind of potable spirits, 
will be marked with the name of such spirits, preceded by the word 
“ imitation ”—as, for example, “ imitation whisky.” 

5. Packages containing cordials, liqueurs, and other like artificial 
compounds will be marked with such appropriate name as shall in¬ 
dicate the kind of the contents. 

The name of the spirits on the heads of all packages of not less than 
20 wine gallons capacity filled by rectifiers must be legibly marked or 
branded in letters not less than 1 inch in length; and on all packages 
of less than 20 wine gallons capacity in letters not less than three- 
eighths of an inch in length. 

The mark or brand may be substantially as follows: 











183 


So much of the above marks as indicate the name and place of busi¬ 
ness of the rectifier and the name of the spirits may be applied by 
the rectifier either before or after the casks are filled, in which case, 
if upon gauging the spirits the gauger finds that the marks thus ap¬ 
plied do not correctly represent the facts, he shall cause immediate 
correction. The above brands or marks will be understood to repre¬ 
sent that the package is a rectifier’s original package and that the 
spirits contained therein were rectified, refined, purified, redistilled, 
or compounded and put up by the party named as a rectifier and at 
the place stated in such brands or marks. 

MARKING AND STAMPING OF PACKAGES OF SPIRITS FILLED ON THE 
PREMISES OF WHOLESALE LIQUOR DEALERS. 

The stamps procured by wholesale liquor dealers, as provided 
herein under the head of “ Wholesale liquor dealers’ stamps,” will be 
affixed and canceled in the following manner: 

Affixing .—The stamps are to be securely affixed to a smooth surface 
of the cask or package. That surface must not have been previously 
painted or covered with any substance. Transparent varnish or any 
other adhesive material which will cause the stamp to stick securely 
and permanently may be used for that purpose. 

Cancellation .—The stamp having been affixed, it must immediately 
be canceled. For this purpose the wholesale liquor dealer will use a 
stencil plate of brass or copper, in which will be cut not less than five 
fine parallel waved lines long enough to extend not less than three- 
quarters of an inch beyond each side of the stamp on the wood of the 
cask; and the name and place of business of the wholesale liquor 
dealer must be cut on one end of the plate, perpendicular to the lines. 
This plate must be imprinted, with blacking or durable coloring 
material, over and across the stamp as indicated and in such manner 
as not to deface the reading matter on the stamp—that is, so as not to 
daub and make it illegible. 

Marking .—The name of the spirits on the heads of all packages 
of not less than 20 wine gallons capacity filled by wholesale liquor 
dealers must be legibly marked or branded in letters not less than 1 
inch in length; and on all packages of less than 20 wine gallons 
capacity in letters not less than three-eighths of an inch in length. 

Wholesale liquor dealers are required to mark legibly with a stencil 
plate, in durable ink, or to cut or burn in a legible manner, on the 
head of each package of distilled spirits filled and stamped by them, 
the present proof of the spirits contained in such package, as indi¬ 
cated in the application for stamp to cover the same and as entered 
in the body of the stamp. Such marking will be in addition to the 
marks prescribed, and will consist of the word “ Proof,” followed by 


184 


the numerals denoting the present proof, which will be applied to the 
head of the package close to the left-hand margin of the stamp and 
parallel thereto. 

The number of the stamp affixed to each wholesale liquor dealer’s 
package will be marked on the head of the package in the manner 
above required in case of the proof, preceded by the word “ Stamp,” 
close to the right-hand margin of the stamp and parallel thereto, the 
arrangement of the marks denoting proof and stamp number of 
wholesale liquor dealers’ packages to be the same as in case of recti¬ 
fiers’ packages. 

The option is given to wholesale liquor dealers, in lieu of the marks 
relating to the proof above prescribed for the head of the barrel, to 
legibly cut or burn the numerals denoting the present proof of the 
contents of the package on the bung stave of the barrel, on the side 
of the bunghole opposite to the stamp head. 

The use of a brand in spiral form by wholesale liquor dealers or 
rectifiers on packages of distilled spirits is prohibited. Such brands 
are not sufficiently legible and subject the package to seizure. 

In addition to the above the wholesale liquor dealer will mark on 
the head of the cask the name of the spirits, which name must cor¬ 
rectly indicate the contents according to the instructions for marking 
packages of distilled spirits on pages 162, 181, and 182 herein. This 
brand must be substantially as follows: 














185 


Covering .—The stamp having been affixed and canceled, it must 
immediately be covered with a coating of transparent varnish. 

PACKAGES NOT TO RECEIVE COMMERCIAL GAUGE MARKS WHILE COVERED 
BY GOVERNMENT GAUGE MARKS AND STAMPS. 

The sending out of packages bearing the Government gauge marks 
and stamps, and also the marks of a subsequent gauge by a commer¬ 
cial gauger showing a larger quantity of spirits in the package than 
is indicated by the official gauge, as practiced by certain rectifiers and 
dealers, is considered to be (if, in fact, no change has been made in 
the contents of the package) in disregard of the purpose and intent of 
sections 3249 and 3250, United States Revised Statutes. The former 
establishes a standard for proof spirits and authorizes the Commis¬ 
sioner of Internal Revenue to prescribe weighing and gauging instru¬ 
ments, etc., and rules and regulations to secure a uniform and correct 
system of inspection, weighing, marking, and gauging of spirits, 
while the latter declares that in all sales of spirits a gallon shall be 
held to be a gallon of proof spirit, according to the standard pre¬ 
scribed in the preceding section, set forth and declared for the in¬ 
spection and gauging of spirits throughout the United States. But if 
an actual increase has been made in the contents of the package, such 
procedure is in conflict with section 3326, United States Revised Stat¬ 
utes, which provides penalties for the fraudulent use of a package 
having any inspection mark or stamp thereon for the purpose of 
selling other spirits or spirits of quantity or quality different from 
the spirits previously inspected therein. 

No marks or brands denoting a quantity or proof different from 
that indicated by the United States official gauge previously made 
will be permitted to be affixed to casks or packages of distilled spirits 
unless there has been a constructive change of package since the last 
official gauge, or unless so much time has elapsed since that gauge 
as to occasion such a change in the volume or proof as to necessitate 
a regauge in order to determine the present actual contents. 

UNOFFICIAL OCCUPATIONS OF INTERNAL-REVENUE GAUGERS. 

Gaugers are prohibited by section 3168, Revised Statutes, under 
penalty of dismissal from office and a heavy fine, from being or 
becoming interested, directly or indirectly, in the manufacture of 
tobacco, snuff, or cigars, or in the production, rectification, or redistil¬ 
lation of distilled spirits, or in the production of fermented liquors. 

Gaugers will not be permitted to be, or to become, interested, di¬ 
rectly or indirectly, in the purchase or sale of distilled spirits or fer¬ 
mented liquors. 


r 


186 


Any gauger found to be so interested will be recommended for sum¬ 
mary dismissal from office. 

With the consent of collectors, gaugers are permitted to engage in 
any business, except as above, including gauging other than that per¬ 
formed in their official capacity, provided that such business or gaug¬ 
ing does not in the least interfere with the efficient discharge of their 
official duties. 

In the performance of commercial gauging, however, the prescribed 
United States standard instruments must be used, and the regulations 
governing official gauging in the ascertainment of the volume and 
proof of distilled spirits must be strictly observed. 

Where it can be done without interfering with the proper discharge 
of their official duties, internal-revenue gaugers, in addition to per¬ 
forming unofficial gauging as above, may furnish additional copies of, 
or extracts from, their official reports on Forms 59, 59J, 237, and 275 
only, and only upon a written request from the person desiring the 
same. Such applications should state the number of packages to be 
gauged or reported and whether an actual gauge is desired or only an 
extra copy of the gauger’s official report, and all such applications 
must be filed in the collector’s office at the end of each month by the 
gauger. 

The extra copies of reports so furnished must correspond exactly 
as to serial numbers of packages and stamps, proof, contents, etc., of 
each package with the official report of the gauger. 

For his services for such unofficial gauging, and for extra copies of 
his official reports, the gauger may be allowed to collect from the 
owner of the spirits a sum not exceeding in any case 8 cents a pack¬ 
age for each package of spirits actually gauged, or 3 cents for each 
package embraced in the copy of the report furnished. 

At the end of the month the gauger must file with the collector a 
report showing the names of the persons from whom such fees were 
collected, and the exact amount received from each during the month. 

In making reports of unofficial gauging, or the extra copies of 
reports of official gauging herein contemplated, the blank forms fur¬ 
nished by the Department should not be used, and such copies are 
additional to the one copy of each official report which the gauger is 
required by regulations to furnish to the person for whom the gaug¬ 
ing is done without charge. Reports of unofficial gauging must not 
be signed by gaugers in their official capacity. 

COMPENSATION OF GAUGERS WHO REINSPECT SPIRITS AFTER REDUCTION 
IN THE ORIGINAL PACKAGE. 

Where the proof of spirits contained in the original package is 
reduced under the regulations, inasmuch as the reduction is not 
obligatory upon the distiller or owner, but is a privilege granted 


187 


wholly for his benefit, and available at his option upon condition that 
no expense shall accrue to the Government therefrom, and as the fur¬ 
ther gauge rendered necessary thereby will add materially to the 
labors of the gauging officer, the compensation of the latter for such 
additional labor must be paid by the person at whose instance the 
reduction is had. 

The gauger or storekeeper-gauger will therefore be allowed to col¬ 
lect from such person a sum not exceeding 10 cents a package for such 
packages not exceeding 20 in number as may be gauged by him in one 
day, and 5 cents for each package in excess of 20 so gauged in one day. 
In addition thereto the gauger will be allowed to collect from such 
person his actual and necessary traveling expenses in going to and 
returning from the place where he performs such service. 

At the end of the month the gauger must file with the collector a 
report showing the name of each person for whom gauging after 
reduction was performed by him, the number of packages reduced 
and gauged in each case, the exact amount received from each per¬ 
son, and the total amount received for such service during the month. 

ALL GAUGING OFFICERS TO FOLLOW THE FOREGOING REGULATIONS. 

The regulations herein, so far as pertain to the duties of a gauger, 
will be observed by all gauging officers. 

REPORTS OF GAUGE TO BE EXAMINED BY COLLECTORS. 

Collectors will cause an examination to be made of the gaugers’ 
returns and call the attention of gaugers to such errors as are found 
therein. 

A full and literal compliance with the regulations in this particu¬ 
lar, extended to all returns of gauging, including Forms 59, 59J, 122, 
and 237, will be expected; and collectors will be held responsible for 
any loss to the revenue arising from any undue allowance in deter¬ 
mining the taxable gallons under the provisions of section 50 of the 
act of August 28, 1894, as amended, they being authorized to adopt 
any measure calculated to secure accuracy in the gaugers’ returns. 
They are particularly enjoined to critically examine all reports of 
regauge made on withdrawal of spirits from warehouse, and to com¬ 
pare them with the records and files of their offices to determine the 
accuracy of the statements as to the original gauge. They will also 
review the computations of the gauger to ascertain as to their ac¬ 
curacy, and will note whether the losses are within the limits pre¬ 
scribed by the law, and when found to be excessive they will deter¬ 
mine whether the proper quantity has been added to the proof gallons 
ascertained by the regauge. 


188 


As a means of insuring this accuracy, and of inciting officers to 
renewed diligence and vigilance, collectors will hereafter keep a 
record of all errors appearing on the returns of each gauging officer 
in the district, whether discovered on examination made either before 
or after transmission to this office. 

This record will be made in a tabulated form, so that tne standing 
of each officer may be readily determined, and those officers who thus 
appear to be most efficient and trustworthy are to be preferred in the 
matter of assignment to duty. 

In addition, collectors are expected to recommend for dismissal any 
officer whose reports are habitually incorrect. 

FORM, SIZE, AND MATERIAL OF PACKAGES FOR DISTILLED SPIRITS. 

As the law requires all packages filled by a distiller or rectifier to 
be gauged, stamped, and branded, and as packages filled by wholesale 
liquor dealers are liable to inspection by internal-revenue officers, all 
such packages must be of such shape and size that they can be cor¬ 
rectly gauged by the prescribed rod, and of such material as will 
admit of the attachment of the stamps and of the placing thereon all 
the marks and brands in the manner required by law, except that 
wholesale liquors dealers who do a bottling business are permitted to 
employ large wooden packages, of a capacity not exceeding 1,000 
gallons, for use strictly as wholesale liquor dealers’ packages, from 
which to draw distilled spirits for bottling purposes only. 

Metal, glass, earthenware, and similar substances, not being suit¬ 
able material for receiving the required marks, brands, and stamps, 
the use of vessels made of such materials for containing distilled 
spirits in quantities of 5 wine gallons and above is not permitted, 
unless such portion or portions of such vessels as may be necessary 
to receive the marks and brands are incased in wood in such manner 
that the casing can not be removed from the vessel without destroying 
the utility of both. 

When so constructed the whole is regarded as constituting but one 
vessel, and the marking, branding, and stamping may be done on the 
outer surface. 

No incased vessels are permitted to be used as above unless one of 
the said vessels, or a model thereof, has been presented to the Com¬ 
missioner of Internal Revenue and received his approval. 

STAND CASKS. 

By the term w stand cask ” is implied ornamental, unmarked, and 
unstamped spirit packages or nonportable casks not intended for 
“ shipment, sale, or delivery,” but designed solely to be set up and 
filled with distilled spirits on the premises of liquor dealers for the 


189 


purpose of drawing spirits therefrom into other casks, packages, or 
vessels to be sold. 

The use of “ stand casks ” is forbidden upon the ground that every 
package filled upon the premises of a wholesale dealer must be marked 
and stamped in accordance with law when filled and must have all 
marks, stamps, and brands obliterated when emptied; and it is im¬ 
practicable to carry out these requirements in the case of the orna¬ 
mental casks known and used as “ stand casks.” 

The term k< cask or package,” as used in the law, is understood to 
mean portable vessels, capable of being gauged with the standard 
combination gauging rod in the manner directed in the Gaugers’ 
Manual. 

A dealer must not draw spirits from any other than a stamped ves¬ 
sel, nor fill any other than a portable one, and all vessels in his pos¬ 
session containing not less than 5 wine gallons of spirits must be 
properly marked and stamped. 

DETENTION OR SEIZURE OF SPIRITS, AND ASSESSMENT OF TAX IN CASE OF 

DISCREPANCY BETWEEN THE MARKS AND BRANDS ON PACKAGES AND 

THE ACTUAL TAXABLE CONTENTS. 

Whenever an examination of any distiller’s original package shows 
an excess of spirits of 1 proof gallon or upward over and above the 
quantity which, according to the marks, stamps, and brands on such 
package, might be lawfully contained therein, it should be detained 
for investigation and a careful gauge made by at least two competent 
gaugers, where practicable, and if the excess as found by both of 
them should amount to 1 proof gallon or upward in any package the 
taxable excess should be estimated by the collector and reported for 
assessment against the distiller. 

In making such report the serial numbers of the packages in which 
the excess is found should be given, and the name of the gauger who 
originally gauged the spirits should be reported. 

If there is no ground for detention other than this excess, and the 
collector is satisfied that the excess occurred without fraudulent 
intent, he may release the goods, without cost to the Government, 
upon being notified that such assessment has been paid; or, if the 
parties in whose possession the spirits were detained desire to pay the 
assessment for the distillers, in order to obtain earlier possession of 
the goods, the collector may receive the tax from them and immedi¬ 
ately release the goods, without waiting for the assessment to be 
made; and in that case, if the spirits were produced in his district, 
he should report the amount on Form 23 as an advance collection. 

Where the tax on an excess is received as above, in case of spirits 
produced in another district, the amount thus collected will be trails- 


190 


mitted, by certificate of deposit or otherwise, to the collector of the 
district in which the spirits were produced, and the fact of such 
remittance will be noted on the report on which the excess appears. 

If the unlawful excess so found should be so large as to awaken sus¬ 
picion of fraud, the spirits should be seized and reported to this office 
for instructions as to proceeding for their forfeiture. 

In all cases where the regauge is made by two gaugers, as above, 
both gaugers will unite in signing the report showing the excess. 

Where it is impracticable to have the regauge performed by two 
competent gaugers the proof of the existence of a taxable excess will 
not be deemed sufficient to warrant action in the direction of collec¬ 
tion of the tax on the apparent excess. 

In all instances, however, where an excess of 1 proof gallon, and 
above, is found upon regauge of a distiller’s original package, the 
action taken under these instructions will be noted upon the return 
showing the excess. 

No assessment is to be reported unless the excess amounts to 1 full 
proof gallon. In case the excess exceeds 1 proof gallon any fraction 
arising of one or more tenths of a gallon will be retained, and the 
hundredths of a gallon less than one-tenth excluded. 

Where the tax on an excess is received as above, in case of spirits 
produced in another district, the amount thus collected will be trans¬ 
mitted, by certificate of deposit or otherwise, to the collector of the 
district in which the spirits were produced, and the fact of such 
remittance will be noted on the report on which the excess appears. 
The collector receiving the tax so transmitted will report the same 
on Form 23. 

REDUCTION IN PROOF OF DISTILLED SPIRITS IN DISTILLERS’ 
ORIGINAL PACKAGES. 

Distilled spirits contained in distillers’ original packages may be 
reduced in strength to a proof not less than 90 per cent after having 
been gauged for withdrawal from distillery warehouse or from gen¬ 
eral or special bonded warehouse, and after having been removed 
from the warehouse and before removal from the premises, or after 
they have been removed from the premises tax paid and are still in 
the possession of the distiller at his free warehouse; or at any time 
upon the premises of a duly qualified wholesale liquor dealer. 

METHOD OF REDUCTION AND LIMIT BY WANTAGE. 

The reduction must be made by the addition of pure water only 
to the spirits without the admixture of any other substance or mate¬ 
rial whatever; and the presence of any other material suitable for 
compounding spirits will not be tolerated on the distillery premises. 


191 


Only such addition of water can be made to the body of spirits in 
any package as the natural wantage of the package at the time of 
withdrawal will allow. No introduction of water will be permitted 
which would require the withdrawal of any portion of the contents 
of the package either before or after the reduction is completed; and 
any transfer of spirits from one package to another for any purpose 
whatever is especially and utterly forbidden. 

The reduction, when on the distillery premises, must be made after 
the removal of the duly stamped packages from the distillery ware¬ 
house, and on the same day, at some convenient place upon the dis¬ 
tillery premises, but must not be made in or near the cistern room, 
nor in or near the main distillery building, nor any building where 
vessels containing spirits undergoing any of the processes of dis¬ 
tillation are situated. 

In cases where such reduction is to prevail to any considerable 
extent, a separate room or building should be provided to be used 
solely for that purpose, and to be known and designated on plans 
and in notices as the reducing room. 

The distiller or owner of the spirits must furnish all the help 
needed to handle the casks or packages, the stencil for the words and 
initial letters with which to make the required brand, and any other 
necessary implement or article. But the gauger will use his own 
canceling stencil to affix his name and title. 

One reduction in proof of the contents of a distiller’s original pack¬ 
age having been made, no further change in proof or volume of the 
spirits contained in such package can be made except in case of an 
actual or constructive change of package. 

NOTICE OF INTENTION TO REDUCE PROOF OF DISTILLED SPIRITS, IN THE 
ORIGINAL PACKAGE, AND RETURN OF GAUGER THEREON. 

Form 463 is adapted to all cases where application is made under 
the regulations for the reduction of distilled spirits contained in the 
distillers’ original packages to a proof not less than 90 per cent, and 
must be utilized in all such cases. 

The party making the application must fill out and sign the blank 
notice at the head of the form and append to his signature the words 
“ Distiller,” “ Wholesale liquor dealer,” or “ Owner,” as the case may 
require. He must also fill out all the columns in the schedule, with 
the exception of those under the heading “ Contents after reduction,” 
which will be filled by the gauger after the reduction in proof has 
been performed. 

Where the schedule on the first page is too small to admit of enter¬ 
ing the details of all packages included in one notice, the same may 
be continued on the second page in the blank provided. 


192 


Where the reduction is to be made at the distillery or at a general 
or special bonded warehouse, the notice should be made after the 
regauge for tax payment and should accompany the Forms 59 and 
179 when sent to the collector’s office for the purpose of procuring the 
necessary stamps. 

Where the reduction is to be made on the premises of a wholesale 
liquor dealer, or at the distiller’s free warehouse, the notice may be 
made at any convenient time and presented to the collector or deputy 
collector in charge of the division. The collector or proper deputy 
collector will fill out and sign the direction to the gauger and trans¬ 
mit the form to the gauger who made the withdrawal gauge, if the 
goods are to be withdrawn from distillery warehouse or from gen¬ 
eral or special bonded warehouse, and in case of goods on the prem¬ 
ises of a wholesale liquor dealer, or at the distiller’s free warehouse 
to the most available gauger on duty in the vicinity. 

The gauger, having witnessed the reduction, performed the regauge 
thereafter, and marked the packages accordingly in the manner pro¬ 
vided by regulation, will make return of the “ Contents after reduc¬ 
tion ” in the columns provided therefor, and will fill out and sign the 
certificate addressed to the collector of the district at the foot of the 
form, after which he will transmit the return to the collector with all 
convenient speed. 

The collector, upon receipt of the form, will see that the same is 
duly indorsed and filed for reference in his office. 

The briefing on the indorsement fold must show the name of the 
distiller, wholesale liquor dealer, or owner who gives the notice, and 
the place at which the reduction is performed. For example: John 
Blank, Distiller, Distillery No. 102; John Blank, Wholesale Liquor 
Dealer, 700 Broadway, New York; John Blank, Owner, Special 
Bonded Warehouse No. 1, Louisville, Ky. 

The briefing must also show the date on which the reduction was 
performed, and the serial numbers of the packages reported and name 
of distiller by whom produced. 

REINSPECTION AND MARKING OF SPIRITS AFTER REDUCTION IN THE 

ORIGINAL PACKAGE AT THE DISTILLERY OR AT A GENERAL OR SPECIAL 

BONDED WAREHOUSE. 

As the quantities of spirits in a package before and after reduction 
should agree quite exactly in proof gallons, and differ in wine gallons 
only according to known rules for the increase in volume, it is requi¬ 
site that the gauge upon withdrawal of spirits to be reduced be made 
by the weighing beam. The wantage rod should not be used in such 
case, except that in case of fruit brandy originally gauged by the rod 
under the regulations, the withdrawal gauge may be performed by the 


193 


same method as that employed on the original gauge, and the rein¬ 
spection after the reduction is accomplished may also be made in like 
manner. 

The withdrawal gauge marks will be cut on the bung stave or stave 
to the right of the bung stave, as the case may require, in the manner 
provided by regulations. 

The gauging officer on duty at the distillery or general or special 
bonded warehouse who gauged the spirits for withdrawal must be 
present and witness the process of reduction, and when the same is 
finished will again take the proof of the spirits and the gross weight 
of the package and, with the marked tare, find the new wine gallons 
and new proof gallons. He will then stencil upon such portion of the 
stamp head of the cask as shall not interfere with or in any manner 
obscure the other marks, brands, and stamps required to be affixed 
and already affixed thereto, his name and title, and between the name 
and title there shall be stenciled the words and letters following, for 

which he shall leave sufficient space: “ Proof reduced to-, G. W. 

-, W. G. -, P. G. -.” In the blanks he will cut or burn 

legibly and durably the figures denoting the new proof, gross weight, 
and wine gallons, and the proof gallons, so that the brand will appear, 
for example, thus: 

R. E. Wilbur, 

Proof reduced to 90, 

G. W., 423, W. G. 43.63, 

P. G. 39.27, 

U. S. Gauger, 

1st Dist. Ill. 

In case there should not be room enough on the stamp head to affix 
the said marks, without obscuring the marks and stamps thereon, but 
not otherwise, the same may be applied to the other head. 

REINSPECTION AND MARKING OF SPIRITS AFTER REDUCTION IN THE 

ORIGINAL PACKAGE ON PREMISES OF WHOLESALE LIQUOR DEALER. OR AT 

A DISTILLER’S FREE WAREHOUSE. 

The gauger, when the reduction has been accomplished, will take 
the proof of the spirits and determine the contents of each package 
by the method which was employed when the same was regauged for 
withdrawal on payment of tax. If such regauge was by weighing, he 
will take the gross weight of the package, and with the marked tare, 
increased by any addition to which the package may be entitled on 
account of soakage occurring in the interval between the withdrawal 
gauge and the time of reduction, determine the present tare; or, if 
the dealer so requests, the gauger will ascertain the actual tare in 

56815—08-13 




194 


accordance with the regulations concerning the tare of spirit pack¬ 
ages. From the gross weight and tare the gauger will determine the 
net weight, and from the net weight and proof he will, by reference 
to the tables, determine the present wine gallons and proof gallons, 
which latter will of course agree substantially with the proof-gallons 
contents before reduction. In a case where the withdrawal regauge 
was performed by the use of the rod, the gauger will employ that 
method in making reinspection of the contents after reduction, and 
make report thereof, and mark the packages accordingly. 

Upon completion of the reinspection after reduction the gauger 
who performs the same will stencil upon such portion of the stamp 
head of the cask as shall not interfere with or in any manner obscure 
the marks, brands, and stamps required to be affixed and already 
affixed thereto, his name and title, and between the name and title 
there shall be stenciled the letters following, in a case where the rein¬ 
spection is by weighing, for which he shall leave sufficient space, 
“ G. W.-—, W. G.-, P. G.-and in case the rein¬ 
spection is by the rod, the following: “ W. -, C. V. -, 

W. G.-, P. G.-.” In the blanks he will cut or burn legibly 

and durably the figures denoting the gross weight, wine gallons, and 
proof gallons after reduction, or, the wantage, correction of volume, 
if any, and wine gallons, and proof gallons after reduction, as the 
case may require. He will also stencil in convenient proximity to the 
marks above specified a statement of the proof to which the spirits 
are reduced, followed by the name of the dealer on whose premises 
the reduction is made, and the date, so that the brand will appear, 
for example, thus: 

R. E. Wilbur, 

G. W. 423, W. G. 43.63, P. G. 39.27, 

U. S. Gauger, 

1st Dist. Ill., 

Proof reduced to 90, 

By John Blank, W. L. D., 

Aug. 15, 1899. 

In case there should not be room enough on the stamp head to affix 
the said marks without obscuring the marks and stamps thereon, but 
not otherwise, the same may be applied to the other head. 

REMOVAL FROM DISTILLERY PREMISES AND ENTRIES ON BOOKS, FORM 52 
AND 52 C, AND ON FORMS 122, 92, AND 92£. 

The reduction, when on the distillery premises, shall be completed 
and the packages removed from the distillery premises on the same 
day that they are withdrawn from the distillery warehouse. Upon 
such removal the distiller will enter upon his Form 52 c the wine and 









195 


proof gallons of each package as shown by the withdrawal gauge in 
the usual manner, and will also by interlineation show the new wine 
gallons, after reduction, and the proof gallons if they shall appear 
to have been changed by the reduction to the extent of one-tenth of 
a gallon or upward, and in one of the unused stamp columns he will 
enter the statement “ Proof reduced to-,” stating the per cent. 

Rectifiers and wholesale liquor dealers will, upon receipt of such 
packages upon their premises, make like entries upon their book, 
Form 52. Dealers will also make similar entries on the book when 
such packages are disposed of, and rectifiers will make like entries 
in giving notice, Form 122, under the heading “ Contents as shown 
by marks.” 

Where application for a wholesale liquor dealer’s stamp is made 
to cover such a package, similar entries will be made in the appro¬ 
priate spaces on the Form 92 or 92£. 

When an original package containing spirits reduced on the prem¬ 
ises of a wholesale liquor dealer is disposed of, the dealer will enter 
the same on his Form 52B according to the contents as shown by 
the marks of the withdrawal gauge, and will also by interlineation 
show T the new wine gallons after the reduction, and the proof gallons 
if they shall appear to have been changed by the reduction to the 
extent of one-tenth of a gallon or upward, and in one of the unused 
columns he will enter the statement “ Proof reduced to-,” stat¬ 

ing the per cent. 

In case such a package is again received on the premises of a 
wholesale liquor dealer, or is scheduled on Form 122, or in case appli¬ 
cation for a wholesale liquor dealer’s stamp is made to cover such a 
package, similar entries will be made on the various forms and 
records prescribed. 

BOOK TO BE KEPT BY WHOLESALE LIQUOR DEALERS AND RECTIFIERS, 

FORM 52. 

Section 3318 of the Revised Statutes provides that— 

Every rectifier and wholesale liquor dealer shall provide a book, to 
be prepared and kept in such form as may be prescribed by the Com¬ 
missioner of Internal Revenue, and shall, on the same day on which he 
receives any foreign or domestic spirits, and before he draws off any 
part thereof, or adds water or anything thereto, or in any respect 
alters the same, enter in such book, and in the proper columns respec¬ 
tively prepared for the purpose, the date when, the name of the per¬ 
son or firm from whom, and the place whence the spirits were received, 
by whom distilled, rectified, or compounded, and when and by whom 
inspected, and, if in the original package, the serial number of each 
package, the number of wine gallons and proof gallons, the kind of 
spirit, and the number and kind of adhesive stamps thereon. And 
every such rectifier and wholesale dealer shall, at the time of sending 




196 


out of his stock or possession any spirits, and before the same are re¬ 
moved from his premises, enter in like manner in the said book the 
day when and the name and place of business of the person or firm to 
whom such spirits are to be sent, the quantity and kind or quality of 
such spirits, the number of gallons and fractions of a gallon at proof, 
and, if in the original packages in which they were received, the name 
of the distiller and the serial number of the package. Every such 
book shall be at all times kept in some public or open place on the 
premises of such rectifier or wholesale dealer for inspection, and any 
revenue officer may examine it and take an abstract therefrom; and, 
when it has been filled up as aforesaid, it shall be preserved by such 
rectifier or wholesale liquor dealer for a period not less than two 
years; and during such time it shall be produced by him to every 
revenue officer demanding it. And wdienever any rectifier or whole¬ 
sale liquor dealer refuses or neglects to provide such book, or to make 
entries therein as aforesaid, or cancels, alters, obliterates, or destroys 
any part of such book, or any entry therein , or makes any false entry 
therein, or hinders or obstructs any revenue officer from examining 
such book, or making any entry therein, or taking any abstract there¬ 
from ; or whenever such book is not preserved or is not produced by 
any rectifier or wholesale liquor dealer as hereinbefore directed, he 
shall pay a penalty of one hundred dollars, and shall on conviction 
be fined not less than one hundred dollars nor more than five thousand 
dollars and imprisoned not less than three months nor more than three 
years. 

In accordance with the above provisions Form 52, revised, has been 
prescribed for use in making the required entries. 

This form of book is required to be kept by every rectifier and 
wholesale liquor dealer who receives or sends out either foreign or 
domestic distilled spirits, and should exhibit all the spirits received 
or sent out, whether received or sent in pursuance of purchase, sale, 
or otherwise. 

Wholesale liquor dealers who are not also rectifiers will be per¬ 
mitted to have books made omitting the columns relative to recti¬ 
fication. 

Rectifiers who are also wholesale liquor dealers must keep the 
accounts relating to each particular business entirely distinct and 
separate by the appropriate use of the columns for spirits rectified. 

Every person who rectifies, purifies, or refines distilled spirits or 
w ines is a rectifier, except distillers v T ho purify or refine distilled spir¬ 
its in their distilleries in the course of original and continuous distil¬ 
lation from mash, wort, or wash, and every person who, by mixing 
distilled spirits, wines, or other liquors with any material, manufac¬ 
tures any spurious, imitation, or compound liquor for sale is also 
regarded as a rectifier. Every person who sells or offers for sale dis¬ 
tilled spirits, wines, or malt liquors in quantities of not less than 5 
gallons at the same time is a wholesale liquor dealer. 

This definition of liquor dealer is held not to apply to those acting 
in the capacity of clerks or agents for an authorized liquor dealer at 


197 


his place of business, nor to those who merely negotiate sales of 
spirits, of which they have neither actual nor constructive possession, 
for owners who make the delivery. 

A person negotiating sales and making delivery as agent at a place 
other than the place of business of the principal thereby becomes a 
liquor dealer, whether he acts in the name of his principal or not. 

Rectifiers and wholesale liquor dealers having spirits stored near 
their place of business and subject to their own control, for the pur¬ 
pose of being disposed of at their place of business, will regard such 
liquors as constituting part of their stock, and enter them accord¬ 
ingly. The business of rectifying, or selling, or offering for sale can 
not be carried on at such places of storage, but only at the place named 
in the special tax receipt. 

Should a rectifier wish to dump a package from which a portion of 
the spirits has been sold by him as a wholesale liquor dealer he will 
make application on Form 92 for a stamp to cover the spirits remain¬ 
ing in the package, and attach said stamp as hereinbefore required. 

He will then transfer such package to himself as a rectifier, report¬ 
ing such transfer on his book (Form 52). 

If, after a portion of the spirits has been sold from any cask or 
package, a wholesale dealer (who has paid special tax as a retail 
liquor dealer) wishes to retail the balance on the same premises, he 
must transfer such balance to himself as a retail liquor dealer and re¬ 
port such transfer on his book (Form 52). 

A person is liable to the special tax as wholesale liquor dealer for 
each and every place where he sells or offers for sale foreign or domes¬ 
tic distilled spirits or wines in quantities of not less than 5 wine gal¬ 
lons at the same time, and must keep a book at each place where 
spirits are sold or offered for sale. 

In entering “ Spirits received ” the following instructions must be 
observed: 

Under “ Date when received ” give the year, month, and day on 
which the spirits are received. 

Under “ From whom received ” enter name of the distiller, dealer, 
rectifier, or other person from whom the spirits are received. In no 
case will the name of an intermediate party, such as a common carrier 
or an agent who simply negotiates sales, be given in this column. 
Dealers and rectifiers can not purchase or receive distilled spirits in 
greater quantity than 20 gallons from any person other than an 
authorized rectifier, distiller, or wholesale liquor dealer; but it is pro¬ 
vided that this provision shall not be held to apply to judicial sales 
or to sales at public auction made by an auctioneer, and certain other 
sales are also excepted by paragraph 5, section 3244, as amended by 
section 4, act of March 1, 1879. (See sec. 3319, Rev. Stat.) 


198 


Under “ Whence received ” write the name of the city or town and 
State, and, if a city, the street and number of the place of business of 
the person from whom received. 

Under the head of “ Number of packages ” enter, in figures, the 
number of packages of each kind of spirits that have been received 
from one person or firm at one time. 

Under the head of “ Kind of spirits ” enter the name of the spirits 
as indicated by the marks on the package. 

Under the head “ By whom distilled or rectified ” write the name 
of the distiller, or, if the spirits have been rectified, the name of the 
rectifier, with the district and State where distilled or rectified. 

This information will appear in the stamps and marks on the bar¬ 
rels, whether change of package by a wholesale dealer has occurred 
or not. 

Under “ By whom and when inspected ” give the name of the 
United States gauger who gauged the package and affixed the stamp 
and the date of such gauge. The name will be found on the stamp 
and in the marks. 

Where impracticable to determine the name of the gauger, as in 
the case of imported spirits, the word “ unknown ” may be entered in 
the space where the name of the gauger would otherwise appear. 

In making entry of a distiller’s original package which was re¬ 
gauged on withdrawal from distillery warehouse the name of the 
gauger who made such regauge will be given. 

Under “ Number of gallons ” enter the number of wine gallons and 
proof gallons in each package, as shown by the marks of the United 
States gauger. The quantity in each package must be stated sepa¬ 
rately. 

Where entry is made of sweetened spirits whose proof is known, 
the actual proof gallons will be entered in the column “ Proof ” under 
the head of “ Number of gallons ” or “ No. of gallons,” as the case 
may be. Where entry is made of sweetened spirits whose proof is not 
known, the number of wine gallons will be inade to appear in the 
proof-gallons column. 

In entering casks of spirits which were regauged on withdrawal 
from distillery warehouse, the number of wine and proof gallons 
marked thereon at the time of such regauge will be entered. 

Under head of “ Number of proof gallons out ” may be entered the 
number of gallons out if a regauge is made at the time of receiving 
the spirits. 

Under the head of “ Serial number of packages ” enter the serial 
number of each package other than rectified spirits, which will be 
found on the head of the barrel under the bung stave, on a line with 
the number of gallons; also, in the warehouse and tax-paid stamps. 


199 


No serial numbers of packages are required on casks of rectified 
spirits. 

Under the head of “ Serial number and kind of stamp ” enter the 
series and serial number of each stamp, which will be found in red 
figures on the stamp on a line with the serial number of each package. 

The series of stamps are shown in the letter preceding the serial 
number, as A, B, C, etc. 

Under the head “ Spirits emptied for rectification from stock 
received,” on the left-hand page, every rectifier will enter in the 
appropriate columns, on the day of dumping, all spirits emptied for 
rectification, giving, in addition to the date, the number of wine and 
proof gallons, the serial number of the packages, the serial number 
and kind of stamps, by whom distilled or rectified, with district and 
State where distilled or rectified, and the date of original inspection. 

When sweetened spirits whose proof is known, or when sweetened 
spirits whose proof is unknown, are emptied for rectification, the rule 
given above for entry of the number of gallons will be observed. 

In entering “ Spirits disposed of,” under head of “ Date when sent ” 
give the year, month, and day on which the spirits are to be sent out 
or otherwise disposed of. 

Under head of “ To whom sent ” give the name of the person to 
whose control the spirits are sent, whether in pursuance of sale or 
otherwise; but the names of intermediate parties, such as common 
carriers or agents, who will not receive actual or constructive posses¬ 
sion thereof, should not be given. 

Under “ Place of business ” give the town or city and State of the 
person to whom sent, and if a city, the street and number of his place 
of business. 

Under “ Number of packages ” enter separately, in figures, the num¬ 
ber of packages of each kind of spirits sent to the same person or 
firm at the same time. 

Under head of “ Kind of spirits ” give the name of the spirits. 

In column “ By whom distilled or rectified ” write the name of the 
distiller, or, if the spirits have been rectified, the name of the rectifier, 
with the district and State where distilled or rectified. If by the 
party himself, he will enter his own name. 

Under head “ By whom inspected ” give the name of the United 
States gauger making the gauge, and the date of such gauge. 

In column “ Number of gallons ” give the wine and proof gallons, 
as shown in the gauge marks of the United States gauger making the 
last gauge. 

In column “ Number of proof gallons out ” may be stated the proof 
gallons out if a regauge is made. 

Under head “ Serial number of package ” enter the serial number of 
each package other than rectified spirits. 


200 


Under head of “ Serial number and kind of stamps ” enter the serial 
number of each stamp in the proper column. 

Under head “ Spirits received from rectification ” enter the date 
when received; “ Number of packages,” the number of wine and 
proof gallons (observing the rule given above in case of sweetened 
spirits), the kind of spirits, the serial number of rectifier’s stamps 
placed thereon, the date of inspection, and the name of the gauger, 
each item to be in the appropriate column. 

All spirits entered on the “ Received ” side of the book must have 
their disposition shown on the “ Disposed of ” side of the same. 

The purchase of spirits solely for exportation and sale abroad does 
not constitute the purchaser a wholesale liquor dealer, and such trans¬ 
action is not required to be entered on the book. 

Persons who simply store spirits for the owners, and neither deal in 
spirits nor own the same, are not required to keep the book. 

When a party carries on the business of wholesale and retail liquor 
dealer on the same premises, he should take credit on this account for 
spirits disposed of at retail, which he has entered as received, by set¬ 
ting aside packages from which to draw for retail only, and entering 
them as disposed of to himself as retail dealer. 

Each package is required to be entered separately, except that when 
a number of packages is received on the same day, from the same 
source, in the same way, distilled or rectified by the same person, 
inspected by the same gauger, and of the same kind, and where the 
serial numbers of the packages and of the stamps are continuous, such 
spirits may be entered in the aggregate. The same rule applies to the 
entry of spirits disposed of. 

The wholesale dealer or rectifier must make the entries of spirits 
received in his Form 52 on the same day on which he received them, 
and before he draws off any part thereof or in any respect alters the 
condition of the same. 

He must also at the time of sending out of his stock or possession 
any spirits, and before the same are removed from his premises, make 
entry of the disposition of the same in said book. 

BOOK, FORM 52c, REVISED, TO BE KEPT BY DISTILLERS. 

Section 62 of the act of August 28, 1894, provides: 

That no distiller who has given the required bond and who sells 
only distilled spirits of his own production at the place of manufac¬ 
ture, or at the place of storage in bond, in the original packages to 
which the tax-paid stamps are affixed, shall be required to pay the 
special tax of a wholesale liquor dealer on account of such sales: Pro¬ 
vided, That he shall be required to keep the book prescribed by sec¬ 
tion thirty-three hundred and eighteen of the Revised Statutes of the 
United States, or so much as shall show the date when he sent out any 
spirits, the serial numbers of the packages containing same, the kind 


201 


and quality of the spirits in wine gallons and taxable gallons, the 
serial numbers of the stamps on the packages, and the name and resi¬ 
dence of the person to whom sent; and the provisions of section live 
of an act entitled “An act to amend the laws relating to internal rev¬ 
enue,” approved March fifth, eighteen hundred and seventy-nine, as 
to transcripts, shall apply to such books. Any failure, by reason of 
refusal or willful neglect, to furnish the transcript by him shall sub¬ 
ject the spirits owned or distilled by him to forfeiture. 

The effect of this section is to require every distiller to keep the 
book prescribed by section 3318 of the Kevised Statutes and to furnish 
transcripts thereof, notwithstanding he is relieved from the payment 
of the special tax of a wholesale liquor dealer on account of sales of 
spirits of his own production at the place of manufacture or of stor¬ 
age in bond. 

The form of book (Form 52C, revised) has been prescribed to be 
kept by distillers in their capacity as wholesale liquor dealers, at their 
distilleries, as a record of the spirits disposed of by them. 

The book itself, which will be in the following form, is not fur¬ 
nished by this office, but. may be procured by distillers from any source 
which they desire and of any size adapted to the extent of their 
business. 

FORM OF BOOK 52C, REVISED. 


Date when 
sent out. 

190 . 

To whom sent. 

Place of 
business. 

Kind 

of 

spir¬ 

its. 

By whom and 
when inspected. 

190 . 

Serial number of 
package. 

Num¬ 
ber of 
gallons. 

Serial number 
and kind of 
stamps. 

Month. 

Day. 

Name. 

| Month. 

S' 

Q 

| Wine. | 

Proof. 

Warehouse. 

Tax paid. 

o 

cx 

k 

W 

G.B.W.H. 















All spirits will be entered upon this book on the day the same are 
withdrawn from the distillery warehouse, which date will be entered 
under the head of “ Date when sent out.” The name of the person, 
firm, or corporation to whom sent and place of business will be 
entered in the appropi'iate spaces under “To whom sent,” and 
“ Place of business.” In case the spirits are removed to the distiller’s 
free warehouse, or to a general bonded warehouse, or for exportation, 
or for use of the United States, or for scientific purposes, the fact will 
be made apparent under said headings, as for example: “To New 
York for export,” or “ To General Bonded Warehouse No. 1, First 
Dist. of Ohio.” 























202 


The kind of spirits as marked on the stamp head of the cask will 
be entered under “ Kind of spirits.” Under “ By whom and when 
inspected ” will be entered the date of the last official inspection 
made in the distillery warehouse and the name of the officer who 
performed the same. Under “ Number of gallons ” will be entered 
the contents of the cask in wine and proof gallons, as shown by such 
inspection. 

In case spirits are withdrawn for scientific purposes or for use of 
the United States, the date of the permit will be entered under the 
head “ Serial number and kind of stamps.” . 

No entry is required to be made on this book when spirits are sold 
in bond on warehouse receipts. The first entry in such cases will be 
made on this book by the distiller, and on Form 52 by the purchaser 
of the spirits, when the same are withdrawn from the distillery ware¬ 
house. 

No distilled spirits on which the tax has been paid are allowed by 
law to be stored or to remain on any distillery premises under penalty 
of forfeiture of all spirits so found. 

Whenever the contents of two or more casks of spirits are united 
in distillery warehouse for exportation, under the provisions of section 
1, act of June 9, 1874, as amended by section 10, act of March 1, 1879 
(section 3330a, Compilation of 1900), the said casks will be fully 
described in the distiller’s book (Form 52C, revised) as usual, and 
under the head of “ To whqm sent ” and “ Place of business ” will be 
written the words “ Contents transferred to cask bearing export 
stamp No. —,” entering in the blank space the number of the export 
stamp affixed to the cask to which the spirits were transferred. 

In the event that the contents of a cask are transferred to two or 
more casks, the entry will be modified accordingly, and the export 
stamp on the cask receiving the greatest bulk of the spirits will be 
given first, and so on. 

TRANSCRIPTS OF ENTRIES IN BOOK, FORM 52. 

By section 5 of the act entitled “An act to amend the laws relating 
to internal revenue,” approved March 1, 1879, section 3318, Revised 
Statutes, is amended as follows: 

That every person required to keep the books prescribed by this sec¬ 
tion shall, on or before the tenth day of each month, make a full and 
complete transcript of all entries made in such book during the month 
preceding, and, after verifying the same by oath, shall forward the 
same to the collector of the district in which he resides. Any failure 
by reason of refusal or neglect to make such transcripts shall subject 
the person so offending to a fine of one hundred dollars for each 
neglect or refusal. 


203 


In accordance therewith, every person whose duty it is to keep the 
wholesale liquor dealers’ and rectifiers’ book, Form 52, will, on or be¬ 
fore the 10th day of each month, make, verify, and forward the 
transcripts, as above provided, for the preceding month. 

Upon receipt of the transcripts, collectors will examine the same 
and carefully file and preserve them for future use. 

Blanks for these transcripts, Forms 52 a and 5, “ Spirits received 
and disposed of,” are furnished by this office. Distillers being re¬ 
quired to keep the wholesale liquor dealers’ book (Form 52C, revised) 
will also be required to make these transcripts as hereinafter directed. 

If any dealer or rectifier prefers to make the transcripts on mani¬ 
fold or other paper, furnished at his own expense, he may be per¬ 
mitted to do so, but they must correspond to the form prescribed, 
and must be verified by oath. 

TRANSCRIPTS OF ENTRIES IN BOOK, FORM 52c, REVISED, MADE BY DIS¬ 
TILLERS ON FORM 370. 

In accordance with the provisions of section 62, act of August 28, 
1894, above quoted, every distiller shall, on or before the 10th day of 
each month, make a full and complete transcript on Form 370 of all 
entries made in the book (Form 52C, revised) during the month pre¬ 
ceding, and, after verifying the same by oath, shall forward the same 
to the collector of the district in which he resides. 

By the terms of section 62, above quoted, any failure of the distiller, 
by reason of refusal or willful neglect, to furnish the transcript, as 
provided, subjects the spirits owned or distilled by him to forfeiture. 

Upon receipt of the transcripts, collectors will examine the same 
and carefully file and preserve them for future use. 

If any distiller prefers to make the transcripts on manifold or other 
paper, furnished at his own expense, he may be permitted to do so, 
but they must correspond to the form prescribed, and must be veri¬ 
fied by oath. 


DISTILLATION OF BRANDY FROM APPLES, PEACHES, GRAPES, 
PEARS, PINEAPPLES, ORANGES, APRICOTS, BERRIES, PRUNES, 
FIGS, OR CHERRIES EXCLUSIVELY. 


EXEMPTIONS. 

Section 3255 of the Revised Statutes of the United States as 
amended reads as follows: 

Sec. 3255. The Commissioner of Internal Revenue, with the ap¬ 
proval of the Secretary of the Treasury, may exempt distillers of 
brandy made exclusively from apples, peaches, grapes, pears, pine¬ 
apples, oranges, apricots, berries, prunes, figs, or cherries from any 
provision of this title relating to the manufacture of spirits, except as 
to the tax thereon, when in his judgment it may seem expedient to 
do so. 

By virtue of the authority contained in said section, as amended, 
the Commissioner of Internal Revenue, with the approval of the Sec¬ 
retary of the Treasury, has exempted and does hereby exempt distillers 
of brandy made exclusively from apples, peaches, grapes, pears, pine¬ 
apples, oranges, apricots, berries, prunes, figs, or cherries from the 
following provisions of law, to wit: 

From all the provisions of sections 3262, 3263, 3267, 3269, 3271, 3273, 
3275, 3279, 3284, 3285, 3294, 3302, 3310, 3318, Revised Statutes, and 
from portions of the following-named sections, to wit: 

So much of section 3259, Revised Statutes, as requires the distiller 
to state in his notice the number of mash tubs and fermenting tubs 
and the cubic contents of each tub; the number of receiving cisterns 
and the cubic contents of each cistern; the number of hours in which 
the distiller will ferment each tub of mash or beer, and a particular 
description of the lot or tract of land on which the distillery is situ¬ 
ated. So much of section 3266, Revised Statutes, as provides that no 
person shall use any still, boiler, or other vessel for the purpose of 
distilling, in any shed, yard, or inclosure connected with any dwelling 
house. From all of sections 3303, 3305, and 3307, Revised Statutes, 
except so much thereof as provides for the keeping of a book or books 
in the manner to be prescribed by the Commissioner of Internal Rev¬ 
enue; the preservation of such book or books for the inspection of 
revenue officers and the penalties pertaining thereto, and the making 
of returns: Provided , however, That the manner of making such re¬ 
turns shall be as prescribed in these regulations. So much of section 

( 204 ) 



205 


3264, Revised Statutes, as provides that 45 or 60 gallons of mash or 
beer brewed or fermented from grain shall represent not less than 1 
bushel of grain, and 7 gallons of mash or beer, brewed or fermented 
from molasses, shall represent not less than 1 gallon of molasses. 

From all of the provisions of sections 3287 and 3293, Revised Stat¬ 
utes, except so much thereof as requires that all distilled spirits shall 
be drawn into casks and shall be gauged, proved, and marked by a 
United States gauger, by cutting on the cask containing such spirits, 
in a manner to be prescribed by the Commissioner of Internal Reve¬ 
nue, the quantity in wine gallons and in proof gallons of the contents 
of such cask, and the serial number of the package, in progressive 
order. 

From so much of section 3295, Revised Statutes, as provides for the 
receiving of an order from the collector for the removal of spirits 
from distillery warehouse, and from so much thereof as requires that 
the affixing of the tax-paid stamp and the cutting or burning of the 
serial number of the stamp shall be done by the gauger. 

From so much of section 3244, Revised Statutes, as requires that 
spirits purified or refined in the original course of manufacture must 
be by continuous distillation through continuous closed vessels and 
pipes until the manufacture thereof is complete; and futher, from 
so much of the provisions of said section as would render such dis¬ 
tillers liable as rectifiers in consequence of the addition of burnt 
sugar to their product while on the distillery premises and in the 
original packages, or in consequence of the addition of burnt sugar 
to the brandy in bulk before the same is drawn off into merchantable 
packages. 

From so much of section 3309, Revised Statutes, as amended, as 
requires that a less number of hours than twenty-four shall be 
reckoned as a full day in estimating the spirit-producing capacity 
of a distillery when the number of hours operated during the month 
is less than twenty-four or exceeds a full day or days by a less num¬ 
ber than twenty-four. 

From so much of section 3311, Revised Statutes, as requires the 
collector, upon receipt of notice from the distiller, to place upon 
fermenting tubs close-fitting covers for the purpose of reducing the 
producing capacity of the distillery. 

From so much of the provisions of section 62 of the act of August 
28, 1894 (section 3318 A, Internal Revenue Compilation of 1900), as 
provides “ That he (every distiller) shall be required to keep the 
book prescribed by section thirty-three hundred and eighteen of the 
Revised Statutes of the United States, or so much as shall show the 
date when he sent out any spirits, the serial numbers of the packages 
containing same, the kind and quality of the spirits in wine gallons 
and taxable gallons, the serial numbers of the stamps on the pack- 


206 


ages, and the name and residence of the person to whom sent; and 
the provisions of section 5 of an act entitled ‘An act to amend the 
laws relating to internal revenue,’ approved March fifth, eighteen 
hundred and seventy-nine, as to transcripts, shall apply to such 
books. Any failure, by reason of refusal or willful neglect, to fur¬ 
nish the transcript by him shall subject the spirits owned or distilled 
by him to forfeiture.” 

Distillation from the aforesaid fruits, or from the undistilled 
products of either or all of these fruits, exclusively, is regarded as a 
distillation from the fruit. 

REGULATIONS AS TO FRUIT DISTILLERS. 

SUPERVISION OF FRUIT DISTILLERIES. 

The fruit distilleries require a large share of the attention of inter¬ 
nal-revenue officers. They are many in number, and often located in 
remote portions of the district; but the law requires that they shall 
be registered and surveyed in the same manner as other distilleries, 
and that the distiller shall make a monthly return. As the assess¬ 
ments against this class of distillers depend almost wholly on the 
return made of time operated, officers will observe that it is of the 
utmost importance that these distilleries be closely watched. 

Fruit distillers should understand that they have no right to receive 
or have on their premises fermented pomace or other materials fit for 
distillation before the approval of their bonds. 

It has been found that in some cases the actual owners and opera¬ 
tors of a distillery have procured some person to give the notice and 
bond who is in no way interested in the operation of the distillery. 
The deputy collector who takes the notice and bond should at the 
time of taking the same satisfy himself that the person tendering the 
notice and bond is the sole owner and proprietor and the only person 
interested in the distillery. An additional statement should also 
be made on the affidavit Form 33 that the surety is in no way inter¬ 
ested in the distillery or in the operation or products thereof, and 
that he believes that the principal on the bond is the real owner and 
proprietor. 

The first visiting officer will ascertain the cubic contents of each 
fermenter and mark or cut thereon a serial number, beginning with 
number one, and cubic contents, and these capacities should be veri¬ 
fied from time to time by other officers. 

The officer who next visits the distillery, after any additional fer¬ 
menters have been brought on the premises, will ascertain the cubic 
contents of each of such additional fermenters and mark on each its 
serial number and cubic contents. 


207 


REGISTRY OF STILLS. 

1* (Sec. 3258, Rev. Stat.) Every still, set up, in the possession of 
any person must be registered on Form 26, either as being for use or 
not for use; and all stills that have not been so registered must be 
forthwith registered by the person in possession thereof with the col¬ 
lector of the district. A failure to so register subjects the possessor 
of the still to the penalties imposed by section 3258, Revised Statutes. 

FRUIT STILLS TO BE STAMPED WITH A NUMBER. 

It is prescribed that all stills set up and commonly used for the dis¬ 
tillation of brandy from apples, peaches, grapes, pears, pineapples, 
oranges, apricots, berries, prunes, figs, or cherries, whether registered 
as for use or not for use, shall be numbered in each collection district 
in progressive order; and each still shall have its serial number, 
together with the number of the district and the name of the State, 
abbreviated, stamped upon the upper part of the body of the still, in 
plain and legible figures and letters of not less than three-eighths of 
an inch in length, and in the following manner, for example: 

1 Cal. 456. 

These numbers will not supersede the registered distillery numbers, 
but distillers of brandy will be required to use them on Form 26 
under the heading “Number of each still,” and they will be entered 
accordingly in the Register of Fruit Distilleries, No. 46. 

A suitable supply of dies for stamping these stills will be furnished 
to collectors upon requisition therefor. 

NOTICE BY DISTILLER. 

2. (Sec. 3259, Rev. Stat.) Each person having a still so registered 
and intending to use the same for the distillation of brandy from 
apples, peaches, grapes, pears, pineapples, oranges, apricots, berries, 
prunes, figs, or cherries must, before commencing distillation, give 
notice on Form 27J to the collector of his district direct, or through 
the deputy collector of his division, of his intention to distill, stating 
in such notice his name and place of residence, and, if a company, 
firm, or corporation, the name and place of residence of each member 
thereof or stockholder therein; the precise place where said business 
is to be carried on; the size and description of the distillery and other 
buildings used in the business of distilling; the number and kind of 
stills, the total capacity of each in gallons; the manner in which the 
same is to be boiled, whether by steam or furnace heat; the kind or 
condition of fruit proposed to be used, as apple pomace, peach pomace, 


208 


berry pomace, cider, etc.; the size and description of the room or 
building on the premises where the distillery is situated in which he 
will deposit and keep the brandy to be distilled by him until the tax 
is paid thereon and the tax-paid stamps attached thereto; and that 
the distillery is not within 600 feet in a direct line of any premises 
authorized to be used for rectifying or refining distilled spirits by 
any process. 

The place where the business is to be carried on must be stated with 
certainty and particularity; if in a city, giving the name of street 
and number of building; if in the country, giving the distance and 
direction from the nearest post-office, and also a general description 
of the farm or lot or tract of land on which are located the distillery, 
the designated place of deposit and other buildings used in connection 
with the business. 

The place designated for the storage of the brandy to be produced 
at the distillery must be used exclusively for that purpose, and 
must not be adjacent to or communicate in any manner with any 
place w T here spirits are retailed. If the place of deposit be in a 
dwelling house it must be some room or portion thereof fully de¬ 
scribed in the notice, to which the storage of the brandy must be 
strictly confined, and accessible at all times to the revenue officers. 

In case of any change in the location, form, capacity, ownership, 
agency, superintendency, or in the persons interested in the business 
of such distillery, including stockholders in a corporation, a new 
notice must be given to the collector or deputy collector of the divi¬ 
sion within twenty-four hours of such change. 

A copy of the notice will be forwarded by the collector to the Com¬ 
missioner of Internal Revenue. 

SURVEY. 

3. (Sec. 3264, Rev. Stat., as amended by the act of March 1, 1879.) 
On the receipt of notice, Form 27^, the collector, or a deputy collector 
designated by him, with the aid of a designated assistant, will pro¬ 
ceed to make a careful survey of the still or stills in accordance with 
the provisions of section 3264, Revised Statutes, unless there be on 
file in his office a correct survey thereof theretofore made and it 
appears to his satisfaction that no change has taken place in the 
capacity of such still or stills since the making of such survey. 

The survey of any distillery the capacity of which, as stated by the 
distiller on Form 27J, does not exceed 150 proof gallons of spirits 
every twenty-four hours may be made by the collector, or a deputy 
designated by him, without the aid of an assistant. 

The persons designated by the Commissioner of Internal Revenue 
to assist in making surveys are ordinarily appointed on the recom¬ 
mendation of the collector. Collectors should see that a sufficient 


209 


number of deputy collectors are recommended for appointment as 
designated assistants to meet all the requirements of the service. 

The reports of surveys are to be made out in triplicate on Form 
99, signed by the collector or deputy collector, as the case may be, and 
his assistant; or, if made without the aid of an assistant, by the col¬ 
lector or deputy collector alone, and one copy thereof delivered to 
the distiller, one retained by the collector, and one transmitted to the 
Commissioner of Internal Eevenue, with a certificate of service by the 
deputy collector who delivered a copy of the report to the distiller or 
his agent, and the certificate of the collector thereon showing the date 
on which the copy was delivered to the distiller. 

The capacity of fruit distilleries is determined solely from the 
capacity for distillation, which is ordinarily arrived at by determin¬ 
ing, first, the capacity in gallons of each still, making proper deduc¬ 
tions for boiling space; second, the number of boilings of each still 
that can be effected in twenty-four hours of each condition of mate¬ 
rials to be used, making proper allowance for doubling; and, third, 
the spirit-producing capacity of such material. The capacity in gal¬ 
lons of each still may be ascertained either by arithmetical calculation 
or by filling the same and measuring the contents. The latter mode is 
preferable with small stills of, sa}^ 100 gallons or less capacity, and 
with stills difficult of measurement. When done by filling and meas¬ 
uring the contents, the columns in Form 99 for diameters may be left 
blank and a note entered on the face of the report showing that the 
capacity was ascertained by filling and measuring the contents. Hav¬ 
ing found the cubic capacity of the still, the next step is to determine 
what space is required for the rising or ebullition of the material to 
be used while boiling. This will depend somewhat on the shape of 
the still and cap and the extent of the heating surface. Observation 
has shown that ordinarily not more than 10 per cent of the cubic 
capacity is needed or used for such-ebullition, and frequently a much 
less per cent is sufficient. Deducting the per cent (stated in gallons) 
required for boiling space from the cubic capacity, the working- 
capacity of each still is arrived at. 

As the materials used are not ordinarily reduced to complete distil¬ 
lation by the first boiling, it becomes necessary to make a proper 
allowance for doubling the singlings or low wines. About three- 
tenths of the working capacity of the distillery is usually necessary 
for that purpose. Having determined the per cent of working- 
capacity necessary for doubling, deduct it from the working capacity, 
and you have the actual working capacity of the distillery. 

The next step is to determine the number of boilings that can be 
effected of each material in each still in twenty-four hours. This is 

56815—08 - 14 


210 


to be determined in view of the appliances in use for that purpose. 
Where steam is used a greater number of boilings can ordinarily be 
effected than where furnace heat is used, and the number of boilings 
that can be effected with furnace heat depends upon the shape of the 
still, the extent of the heating surface, and the manner in which the 
still is set. Returns to this office show that, ordinarily, seven boil¬ 
ings of fruit in any of the conditions in which it is used may be had 
in twenty-four hours, and in many instances a greater number. The 
whole number of boilings that it is found can be made must be stated, 
as the allowance for doubling is made elsewhere. 

As some of the materials used in this kind of distillation require an 
addition of water thereto to prevent burning in boiling it becomes 
necessary to determine which of the materials to be used requires an 
addition of water, and the quantity of water necessary to be added, 
as the quantity of materials that can be distilled will be reduced in 
exact proportion to the quantity of water added. Pomace and cheese 
are the only materials to which an addition of water is known to be 
absolutely required, and it is believed that not more than one-third 
portion of water is necessary; that is, one-half as much water as 
material. The quantity of water necessary to be added to each mate¬ 
rial must be stated under the proper head. 

From these findings the quantity of each material that can be dis¬ 
tilled into brandy in each twenty-four hours is readily ascertained, 
and it only remains to determine the quantity of each of the materials 
necessary to produce a gallon of proof brandy to arrive at the brandy- 
producing capacity of the distillery. 

Apples, peaches, grapes, pears, pineapples, oranges, apricots, ber¬ 
ries, prunes, figs, and cherries from which brandy is distilled may 
be used in such a variety of conditions in different sections of the 
country that it is difficult to give a classification of these materials 
which will embrace every condition in which they may be used. The 
following classification will, however, be found sufficiently compre¬ 
hensive to embrace any of the ordinary conditions in which the fruit 
is distilled, viz, pomace, cider, wine, sour wine, wash, cheese, and 
lees. The blanks will be found to contain a column for u other con¬ 
ditions of said fruits,” in which to embrace other conditions of these 
fruits not clearly coming under either of the above classifications. 

By pomace is meant the crushed fruit without the juice being 
expressed therefrom; cider, the expressed juice of the apple, includ¬ 
ing, for the purpose of this classification, the juice of the peach, pear, 
pineapple, orange, apricot, berry, and cherry; wine, the fermented 
juice of the grape, prune, or fig; sour wine, the fermented juice of the 
grape, prune, or fig, partly acetified; cheese, the residue of the fruit 
after the juice has been expressed therefrom; wash, the liquid 


211 


expressed from the cheese after adding water thereto; lees, or 
u piquette,” the dregs or settlings of wine. 

By averaging the returns of distillers of brandy from apples, 
peaches, and grapes from different States, made to this office during 
one fiscal year, it was found that a gallon of proof brandy was pro¬ 
duced from the following quantity of each material, to wit: 


Apple or peach pomace. 

Grape pomace_ 

Cider_ 

Wine_ T _ 

Sour wine_ 

Cheese_ 

Wash____ 

Lees, or piquette_ 


Gallons. 

14 

10 to 12 
11 
5 
7 

15 

10 to 12* 
7 


While these are the average results, as shown by the returns, it will 
be remembered that at some distilleries a less and at others a greater 
quantity of these materials is required to produce a proof gallon of 
brandy. 

In estimating the spirit-producing capacity of the several fruits in 
their various conditions, the fruits, other than apples, peaches, or 
grapes, may be rated as follows: Pear, apricot, or cherry pomace may 
be rated with apple or peach pomace, and as having the same spirit 
yield. Prune or fig pomace may be rated with grape pomace. Pine¬ 
apple, orange, and berry pomace may be classed together, and rated 
to yield a gallon of brandy from each 15 to 18 gallons of pomace. 
Prunes or figs will be classed with grapes as to yield from wine, sour 
wine, or lees. 

The expressed juice of all the fruits other than grapes, prunes, and 
figs will be estimated to have the yield of cider. 

Cheese or wash from any fruit, without exception, will be estimated 
as having the yield assigned above to these conditions of fruit. 

As some of the fruits other than apples, peaches, or grapes have not 
been used in sufficient quantities to show from actual results the spirit- 
yielding capacity of their several conditions, it is difficult for this 
office to lay down any fixed rules on the subject, and it must necessar¬ 
ily leave the determination of the quantity of spirits to be produced 
from a given quantity of each of these materials to the judgment of 
the officers making the surveys, they acting upon the most reliable 
information that can be obtained. 

The foregoing instructions are applicable to the kind of distilleries 
generally in use for distilling brandy from the fruits mentioned. 
Instances will be found, however, where the material is introduced 
into the still by means of a charger, in w T hich it is heated to a certain 
degree, thereby facilitating the boiling off. This is more frequently 
the case where the distillation is by steam. In steam distilleries the 










212 


stills are sometimes constructed with two or more chambers, in some 
instances all the chambers being used for distillation, in others only 
the lower chambers, the upper being used as a charger. Where the 
worm is so attached as to receive the vapor from all the chambers, 
they all constitute a part of the still, and the capacity should be esti¬ 
mated on all the chambers unless a separate charger is used; and 
where the worm is so attached as to only receive the vapor from the 
lower chamber, then the upper chamber is to be treated as a charger. 
For instance, a three-chambered still, with a worm attached to the 
lower chamber only, is to be estimated by the capacity of the upper 
chamber, that being the charger to such a still. 

Where chargers are .used the capacity will be more readily and 
accurately arrived at by taking the capacity of the charger instead 
of the still. In such case the entire capacity of the charger will be 
given as the working capacity, without making any deduction for 
boiling space. The number of charges that can be distilled in twenty- 
four hours will be given as the number of boilings. The other esti¬ 
mates determining the capacity are to be made the same as in other 
fruit distilleries. Where the estimated capacity is based upon the 
capacity of the charger the fact will be so stated on Form 99. 

When, however, more material can be distilled in the still at one 
boiling than can be contained in the charger at one filling the capac¬ 
ity of the still will be taken instead of the charger. The variety of 
stills in use for distillation and the variable quality and conditions 
of the fruits used in different parts of the country render it impracti¬ 
cable to lay down any fixed rules by which the surveyors are to be 
governed. What is herein stated as to the number of boilings and the 
spirit strength of material is intended as matter of information rather 
than as rules to be arbitrarily followed. Much of the information 
upon which the estimate of capacity is based is only ascertainable on 
view of the distilling apparatus, and the surveyors are therefore 
necessarily left to the exercise of their judgment in the light of the 
information herein given and of the past experience in their dis¬ 
tricts, especially as shown by the returns of prior j^ears. 

Each distillery should be correctly surveyed before commencing, so 
that the distiller may be assured of the capacity to which he will 
be held for the season, and the Government saved the expense of 
resurveys. 

BOND. 

4. (Sec. 3260, Rev. Stat.) After the completion of the survey and 
before the commencement of distillation, each distiller shall make 
and execute a bond on Form 30-J, with at least two sureties, to be 
approved by the collector of the district; unless under the authority 
contained in an act approved August 13, 1894, a corporation duly 


213 


authorized in writing by the Attorney-General of the United States 
to become surety on such bonds shall be offered as a sole surety 
thereon. The penal sum of said bond shall not be less than the 
amount of the tax on the spirits that can be distilled in his dis¬ 
tillery during a period of fifteen days, as ascertained by the survey, 
but in no case shall the penal sum exceed $100,000. The location of 
the distillery must be stated with certainty and accuracy; if in a 
city, village, or town, the blank should be filled as printed; if in the 
country, it should be described as near the nearest city, village, or 
town, or post-office. Bonds so given expire on the last day of April 
of each year, and parties must renew their bonds before continuing 
or again engaging in distillation after that date. A new bond shall 
be required in case of the death, insolvency, or removal of either of 
the sureties, and may be required in any other contingency, at the 
discretion of the collector or Commissioner of Internal Revenue. On 
the presentation of such bonds to the collector he shall examine the 
same and satisfy himself that they are correct in form and duly exe¬ 
cuted according to law; that the personal sureties thereon are resi¬ 
dents of the district, or of some county adjoining the district within 
the same State; and that such sureties are ample security for the 
amount, of such bond, and for that purpose will require from personal 
sureties affidavits on Form 33, and may require an abstract of title or 
other evidences as to their solvency. The collector will indorse his 
approval on each bond, certifying that the bond was properly filled 
up and executed, and that the sureties thereon are in his belief suffi¬ 
cient. When approved, a copy of the bond, together with copies 
of Form 33, will be forwarded to the Commissioner of Internal 
Revenue. 

Such bonds when signed by a corporation as surety will be executed 
in duplicate, and when approved one copy will be filed in the col¬ 
lector’s office and the other forwarded to the Commissioner of In¬ 
ternal Revenue. 

(For additional instructions see page 25, under the head of “ Dis¬ 
tillers’ bonds,” and page 28, under the head “ Power of collectors to 
refuse to approve distillers’ bonds.”) 

UOOIv. 

5. (Secs. 3303, 3304, 3305, and 3307, Rev. Stat.) Every fruit dis¬ 
tiller must provide himself with a book in accordance with Form No. 
254, revised, and prescribed by the Commissioner of Internal Reve¬ 
nue, in which he shall, from day to day, make or cause to be made 
true and exact entry of the kind and quantity of material purchased 
or received, and the name and residence of the person from whom 
purchased or received; the serial numbers of fermenters filled and 


214 


emptied; the hours of commencing and closing work and the total 
hours worked; the kind, quantity, and condition of the fruits used; 
the number of times each still has been boiled off during each day; 
the quantity of singlings and of brandy produced thereby; the quan¬ 
tity of brandy gauged and by whom and when inspected; and the 
quantity of brandy sold or removed and the name of the person to 
whom sent, and location, which book must be always kept open to 
the inspection of any revenue officer, and when filled up shall be pre¬ 
served by the distiller for the period of not less than two years there¬ 
after, and whenever required shall be produced for the inspection of 
any revenue officer. Severe penalties are provided in the law for 
making false entry in such book or for omitting to make the entries 
required, with intent to defraud or conceal, etc. 

The hour of commencing work, when boiling is by furnace heat, is 
the hour of lighting the fire, and when boiling is by steam, the hour 
when the steam is applied, and the hour of closing work in either 
case is the hour when brandy or singlings cease to run, and the time 
must be so entered on the record. Entry of brandy sold or removed 
will be made even though the sales or removals are made after the 
close of operations at the distillery. 

Distillers are at liberty to procure the book in any way they see fit. 
All the foregoing requirements must be complied with by the distiller 
before the collector can approve his bond, and the distiller must not 
commence work at his distillery before the bond is approved. 

SPIRITS NOT TO BE REMOVED UNTIL TAX STAMPS AFFIXED. 

On completing the process of distillation, the distiller must draw 
the brandy distilled by him into casks, each of not less contents than 
10 gallons, wine measure, and must immediately remove the same to 
the designated place of deposit on the distillery premises and there 
retain it until the tax is paid thereon, and the tax stamps affixed 
thereto, as hereinafter directed, or until it is otherwise removed 
according to law. 

Severe penalties are provided in the law for altering, changing, 
consuming, or removing the spirits before the tax is paid thereon 
and the tax stamps attached thereto. 

GAUGING. 

6. (Secs. 3295 and 3322, Rev. Stat.) All singlings must, whenever 
practicable, be doubled and ready for gauging by or before the end of 
the month; otherwise singlings will be liable to be taxed as brandy. 
For the purpose of this gauge the brandy produced during the month 
must be placed in suitable packages and not allowed to accumulate 
indefinitely in tanks or vessels, thus affording opportunity to confuse 




215 


the product of different months. If, for any reason, all the brandy 
produced during the month has not been gauged, the distiller will, 
on or before the last day of the month, notify the collector of his 
district, stating the number of packages of brandy that have been 
distilled by him within the month, and number of wine gallons, with 
his request to have the same gauged and marked; and on the receipt 
of such notice the collector of the district shall cause the brandy 
produced during the month to be gauged, proved, and marked, as 
hereinafter directed, by a United States gauger, who, upon order 
of the collector, shall proceed at once to gauge, prove, and mark each 
cask of such spirits as he may find at the distillery or designated 
place of deposit; and shall cut upon the bung stave of each cask the 
wine gallons, the proof, and the proof gallons and such other marks 
as are by regulation required to be cut upon the bung staves of 
casks; and shall cut or burn on the head of each cask the name of such 
distiller, the district and State, and the registered number of the dis¬ 
tillery, the serial number of the cask, and the kind of spirits, and 
shall mark thereon the date of such gauge and the name of the gauger 
by whom made, placing such date and name on the head of the ca'sk 
in such way as to admit of the attaching of the tax-paid stamp be¬ 
tween the same. The gauger, on completing each inspection, shall 
immediately make report thereof, in triplicate, daily, on Form 594, 
showing for whom gauged and where, the number of casks, the serial 
number of each, the proof, the wine gallons, the proof gallons, and 
the taxable gallons of each, the kind of spirits and the amount of tax 
thereon, and sign and transmit the same to the collector. (See, also, 
paragraphs 1 and 5, page 224, under title “ Schedule of returns on 
Form 59J,” etc.) 

(For regulations regarding serial numbers of packages and treat¬ 
ment of remnants, see pp. 224 to 226 herein.) 

RETURNS ON FORM 15. 

On or before the 10th day of each month, from the time the dis¬ 
tiller’s bond is approved until the distillery is closed for the se.ason, 
and the still or stills are registered as not for use on Form 26, or until 
all brandy distilled has been sold or removed, the distiller shall make 
a return, in duplicate, on Form 15, showing the quantity and kind of 
material purchased or received each day of the preceding month; the 
name and residence of the person from whom purchased or received; 
the days upon which his distillery was operated; the hour of com¬ 
mencing, the hour of closing, the number of hours between such time 
of commencing and closing, the total number of hours worked during 
the month; the kind, quantity (in gallons), and condition of fruit 
used; the number of times each still was boiled oft each day; the 


216 


quantity of singlings (in wine gallons) on hand on the 1st of the 
month, the quantity of singlings produced, the quantity remaining on 
hand at the close of the month, and the number of gallons of sin¬ 
glings converted into brandy during the month; the quantity of 
brandy distilled during the month; the quantity of brandy sold or 
removed, and the name of the person to whom sent, and location. 

In case the brandy has been gauged, the distiller will report, in a 
single item against the last day of the month, the total number of 
wine and proof gallons of brandy produced and the amount of tax 
thereon. This report of brandy produced must in all cases be taken 
from the gauger’s report on Form 59J; and if for any reason a 
gauger has failed to visit the distillery and gauge the brandy pro¬ 
duced, the distiller will report the quantity of singlings on hand on 
the first day of the month for which the report was made, together 
with the quantity of singlings produced during the month, as on hand 
at the close of the month, whether converted into brandy or not; and 
under the head of “ Brandy distilled ” he will enter “ Brandy not 
gauged.” 

This return shall be signed by the distiller and sworn to by him 
before the collector, deputy collector, or some other officer having 
general power to administer oaths, and shall be transmitted to the 
collector, who, on receipt thereof, shall transmit a copy to the Com¬ 
missioner of Internal Revenue. 

ADDITION OF BURNT SUGAR TO BRANDY. 

Distillers desiring to add a small quantity of burnt sugar to their 
product while on the distillery premises and in the original packages 
must do so in the presence of the United States gauger after the 
brandy has been gauged and before the tax-paid stamp is affixed. 

When the burnt sugar is to be added to the brandy in bulk before 
the same is drawn off into merchantable packages, the following 
requirements will be observed: 

The tanks or vats in which such addition is to be made at each dis¬ 
tillery must each be designated by a serial number durably painted 
on the side in characters not less than 3 inches high. The burnt 
sugar must be added to the brandy contained in one or more of the 
vessels so marked in the presence of a United States gauger. Before 
such addition is made and after the spirits have been thoroughly 
plunged, the gauger will determine the indication and temperature 
and the resulting proof of the brandy contained in each tank or vat. 
Unless the distiller elects to immediately draw the brandy thus treated 
into merchantable packages, the gauger will report the indication and 
temperature and resulting proof of the spirits in the bulk package 
upon Form 59 filling in the heading of the return and signing the 
same in the usual manner, and distinguishing the return thus made 


217 


from an ordinary report on Form 59£ by entering conspicuously on 
the face thereof the words “ Report of bulk proof.” Each vessel or 
bulk package thus tested will have the details of its proof reported 
separately and be designated on the return by its appropriate num¬ 
ber. The gauger will at once transmit the return, Form 59J, to the 
collector of the district, in whose office it will be filed for reference, 
and will retain a copy or memorandum of the details thereof for his 
own information and guidance. If the distiller elects to immediately 
withdraw the brandy into merchantable packages on the same day 
that the bulk proof is determined as above, the preliminary report 
on Form 591 showing details of the bulk proof may be dispensed with. 

When the distiller desires to draw the brandy thus treated into 
merchantable packages for tax payment or otherwise, the gauger on 
duty at the distillery will witness the filling of the packages and will 
thereafter gauge the same in the usual manner, determining the indi¬ 
cation and temperature and resulting proof of each package, and 
reporting all the details of the gauge on Form 591. When all the 
packages reported on any return are filled from the same tank or vat, 
the gauger will enter at the head of column 10 of the Form 591, in 
red ink, preceded by the letters “ B. P.” (signifying bulk proof), the 
proof of the spirits as previously determined in the tank or vat. 
Should any return embrace packages filled from two or more tanks or 
vats varying in proof, it will, of course, be necessary to enter the bulk 
proof for each package or group of packages. In case the proof of 
the contents of any package as determined by the official gauge 
thereof, is less than the bulk proof thus entered the latter will be 
taken to be the true proof of the contents of the package, and the 
wine and proof gallons contents of such package will be computed 
according to the bulk proof, and entered accordingly in columns 9 
and 11 of the return, Form 59J. In case the proof of the contents of 
any package, as determined by the official gauge, equals or exceeds 
the bulk proof, the latter will be disregarded and the wine and proof 
gallons contents of such package will be computed according to the 
proof shown by the official gauge thereof. 


PAYMENT OF TAX. 


In accordance with the provisions of section 2, act of March 3, 1877, 
as extended by the act of October 18, 1888, collectors are required to 
report for assessment all fruit brandy not previously tax paid or 
entered for deposit in special bonded warehouses, or intended to be 
used in the fortification of pure sweet wine, as provided by law, on 
the monthly list, Form 23, next succeeding that in which such brandy 
is produced. 

In order that the taxes due and not paid on brandy may be promptly 
assessed as set forth above, and the collection of the same enforced 


218 


without delay, collectors will instruct officers engaged in the examina¬ 
tion of fruit distilleries to keep a close and effective supervision of the 
operations of such distilleries and to report each month all brandy 
gauged and not tax paid or removed for the fortification of wine or 
to a special bonded warehouse in ample time for the assessment of 
the same in column 10J of the next list. 

Distillers should also be notified to make their returns, Form 15, 
for each month on or before the 10th day of the next month, and that 
they will be expected at the time of making the return to pay the tax 
on the brandy produced and gauged unless the same is removed in 
bond for fortification of pure sweet wine or for deposit in a special 
bonded warehouse in accordance with laws authorizing such removals. 

On payment of the tax upon the brandy, as shown in the gauger’s 
report, the collector shall prepare tax-paid stamps of the proper 
denomination, with all the blanks filled up according to the facts as 
appearing in such gauger’s return, including the serial number of the 
cask to which each stamp is to be attached, which stamps shall be 
signed by the collector, as well as by the gauger making the return, 
and delivered to the distiller. 

Upon the receipt from the collector of the tax-paid stamps the dis¬ 
tiller shall affix the same to the casks in a secure and permanent 
manner, by pasting the same upon the head of the casks at the place 
previously designated by the gauger, and by driving tacks, one in 
each corner and one in the middle of each of the four sides of the 
stamps, making not less than eight in number, and shall cancel the 
same by writing across the face of the stamp his name and the date 
upon which the stamp is affixed, and varnish the stamp with a trans¬ 
parent varnish, so as to protect it from removal or damage by expos¬ 
ure, and shall cut or burn, in legible figures upon the head of the 
cask the serial number of the stamp attached thereto and the date of 
the payment of the tax. In attaching the stamps the distiller must be 
careful to attach each stamp to the cask the serial number of which 
is given in the stamp; and on having so attached the stamp he shall 
make entry of the serial number of each cask and of the stamp 
attached thereto in the proper column in his book, Form 25J, and on 
selling or disposing of the packages so stamped, shall enter on his 
book the name of the person to whom sent and location. 

The brandy when put up, marked, and stamped as hereinbefore 
required may be disposed of by the distiller under the authority of 
the fourth paragraph of section 3211, Revised Statutes, as amended, 
by sale or otherwise, at the place of manufacture, in the original 
casks or packages to which the tax stamps are affixed. Distillers de¬ 
siring to retain the brandy for their own consumption must put it 
up, mark it, and stamp it, the same as if intended for sale. 


219 


Under these regulations it is permissible that a distiller legally 
authorized may receive either of the fruits named or the undistilled 
products thereof from another person for the purpose of distillation, 
returning to that other person all or a part of the brandy produced 
therefrom; but in such case the Government recognizes no person in 
the transaction but the distiller, and the brandy, when distilled, must 
be put up, marked, and stamped the same as if distilled by the dis¬ 
tiller from his own fruits and for his own consumption or sale. Dis¬ 
tillers can not dispose of the brandy distilled by them in any other 
than the tax-stamped packages, nor at any other place than the place 
of manufacture or of storage in bond. Every distiller is required, 
from the date of the approval of his bond until he permanently dis¬ 
continues business at his distillery, to render all the monthly notices 
and returns required, whether any distillation has been had at his 
distillery within the month or not; and where no distillation has been 
bad, the returns shall show that fact. Distillers desiring to perma¬ 
nently discontinue business must do so by registering their stills not 
for use, on Form 26, which form shall be executed in duplicate and 
delivered to the deputy collector of the division, who, on receipt 
thereof, will see that the still (or stills) is so dismantled as to prevent 
further distillation, and when so dismantled shall transmit said Form 
26 to the collector of the district, who, on receipt thereof, will transmit 
one copy of said Form 26 to the Commissioner of Internal Revenue. 

ASSESSMENT FOR DEFICIENCIES. 

Under the provisions of sections 3182 and 3309, Revised Statutes, as 
amended, it becomes the duty of the Commissioner of Internal Reve¬ 
nue to make the inquiries, determinations, and assessments against 
distillers imposed by section 3309, Revised Statutes, as amended, and 
in order that there may be no unnecessary delay in making such as¬ 
sessments, collectors are hereby instructed to take such steps as will 
secure the forwarding of the distiller’s returns on Form 15, and the 
gaugers report on Form 59U within the time prescribed by law, 
which reports should be carefully examined by the collector, in order 
to satisfy himself that they are correct. 

(Sec. *3309, Rev. Stat., as amended.) On the receipt of the distil¬ 
ler’s return, Form 15, in each month the Commissioner will inquire 
and determine whether said distiller has accounted in his return for 
the month for which it is rendered for all the brandy produced by 
him. If the quantity so reported by the distiller is less than 80 per 
cent of the surveyed capacity of the distillery for the time run and 
material used, the Commissioner will assess the distiller at the rate 
of $1.10 for each proof gallon of such deficiency. If the Commissioner 
finds upon an examination that the distiller has not reported all 


220 


spirits actually produced by him during the month, he will ascertain 
the quantity actually produced and make assessment for the differ¬ 
ence; provided that the actual product shall be assumed to be in no 
case less than 80 per cent of the producing capacity of the distillery 
as estimated under the provisions of law. 

In determining the quantity of brandy actually produced, the Com¬ 
missioner will ascertain the kind and quantity of materials used, and 
determine such quantity therefrom on the basis of the spirit-pro¬ 
ducing capacity of the materials used as fixed in the survey. 

In the absence of a satisfactory return of the material used and 
time operated, he will base his estimate of actual production upon the 
surveyed capacity of the distillery for the period which it is ascer¬ 
tained it was operated, fixing the production at the full capacity 
thereof. 

The time in days and the fractional part of a day for which the 
distiller will be held liable will be found by aggregating the hours 
run each month and dividing by 24. 

When two or more kinds of materials are used on the same calen¬ 
dar day, the computation as to capacity for the number of hours 
operated during that day will be on the basis of the capacity fixed for 
the most productive material. 

When but one kind of material is used during the month, the re¬ 
quired product for the month will be 80 per cent of the product found 
by multiplying the surveyed daily spirit-producing capacity for the 
material used by the number of days and fractional part of a day, if 
there be a fraction. 

When two or more kinds of material are used on different calendar 
days, the required product for the month will be 80 per cent of the 
aggregate of the several products found by multiplying the daily 
spirit-producing capacity for each kind of material by the number of 
days and fractional part of a day, if there be a fraction, during which 
each kind was used. 

Whenever the gauger’s report shall show the wine gallons of brandy 
produced to be in excess of the proof gallons, the Commissioner will 
treat the wine gallons as the quantity produced. 

In case no brandy has been gauged, the Commissioner will consider 
the quantity of singlings on hand the first of the month for which the 
assessment is made, together with the quantity of singlings produced 
during the month, as still on hand, whether converted into brandy or 
not, and the number of days for which the 80 per cent should be com¬ 
puted will be carried forward to the next month. 

It often happens that where a fruit distiller has two stills in his 
distillery he only uses one of such stills. In such cases the distiller 
should register one of his stills as not for use, and make application 
on Form 143 for reduction of capacity, as otherwise the assessment 


would be made on the entire capacity of the distillery, which, in the 
case of a fruit distillery, is computed on the capacity of the stills 
without reference to the fermenting capacity. 

Collectors, in forwarding to the Commissioner a copy of the Form 
15 on which the assessment is based, will securely attach thereto a 
copy of the gauger’s report on Form 59J. 

In no case should these reports be sent separately, except when no 
work is done in a distillery during the month, in which case Form 
15 may be forwarded alone. 

When no brandy has been gauged that fact should be noted on 
Form 15 by the distiller. 

It is expected that returns on Form 15 and on Form 591 will be 
forwarded early in each month, without waiting, as has been the 
custom of some officers, until the season is over and the distillery is 
registered as not for use. 

ASSESSMENT OF TAX ON BRANDY PRODUCED AND NOT ACCOUNTED FOR. 

Upon receipt of the distiller’s return, Form 15, for any month, the 
several statements on Form 192 for that month should be carefully 
examined and summarized and compared by the collector with the 
distiller’s return, and if then, or at the close of the season’s opera¬ 
tions, it shall be found that the distiller has received on his premises 
materials which have not been accounted for, or has used materials 
which have not been reported as used, it may be assumed that brandy 
has been produced from the materials used and not reported, or 
received and not accounted for, and that such brandy has not been 
reported. 

The quantity of brandy produced from such materials and not 
reported should, if possible, be determined from all the evidence that 
can be obtained. If, however, the quantity actually produced can 
not be thus determined, the production should be estimated upon the 
basis of the survey for the materials found to have been so received 
or used. This estimate of production from the materials fraudu¬ 
lently used should be at the rate of not less than one gallon of brandy 
from the number of gallons of such materials which under the survey 
will produce a gallon of brandy. 

If it is found that all the materials received have been accounted 
for and all the materials used have been reported used, but that the 
distiller has not accounted for all the brandy produced, the quantity 
actually produced should, if possible, be determined from all the 
evidence that can be obtained. If, however, the actual production 
can not be thus determined, it should be estimated from the entire 
quantity of materials reported used upon the basis of the survey as 
above provided in case of materials fraudulently used. 


The facts in either of the above cases, together with the estimates, 
will be reported to the Commissioner with a view to assessment. 

The evidence that brandy has been produced from materials re¬ 
ported used and has not been accounted for by the distiller should be 
direct and positive, and a fraudulent removal of brandy can not be 
assumed from the mere fact that the quantity of brandy reported is 
not equal to that number of gallons which the materials reported 
used will under the survey produce. 

Collectors will not report for assessment on Lists Form 23, 44 stamp- 
tax brandy,” apparently due from fruit distillers on reports of reve¬ 
nue agents or special examining officers until the fruit distiller is 
notified of such proposed assessment, nor until the question of the 
liability of the distiller under section 3309, Revised Statutes, has 
been determined. 

If after the determination of the liability under section 3309, Re¬ 
vised Statutes, and after notifying the distiller, no explanation is 
received from him within thirty days thereafter, the collector will 
report the amount found due for assessment on Form 23 with note 
in column T thereof, 44 No explanation received.” 

If the distiller can by affidavit show to the satisfaction-of the col¬ 
lector that such assessment ought not to be made, the collector will 
forward all the papers, with his recommendation in the matter, to 
this office with Form 23, and note in column T of that form 44 Evi¬ 
dence herewith.” 

STATUTORY RELIEF AS TO FRUIT-BRANDY DEFICIENCIES CAUSED BY 
ACCIDENT OR MISUNDERSTANDING. 

Distillers of brandy from apples, peaches, grapes, pears, pineapples, 
oranges, apricots, berries, prunes, figs, or cherries will be notified by 
the Commissioner, on Form 6983, when deficient in the production 
of brandy. This notice will state the number of gallons and . the 
amount of tax due thereon, and that such tax will be assessed unless 
the distiller shows by satisfactory evidence that he is entitled to relief 
on the ground of unavoidable accident or a misunderstanding of the 
law or regulations (under the provisions of section 6, act of March 1, 
1879, as amended by section 8, act of May 28, 1880), or on the ground 
of an error in the computation. 

Distillers should at once reply to such notices on Form 6983, giv¬ 
ing their reasons, if any, why such proposed assessments should not 
be made, and stating when they propose to submit evidence. Thirty 
days are allowed distillers to furnish such evidence prior to assess¬ 
ment, the time being reckoned from the date of receipt of the notice 
by them. If in any case the evidence is not received prior to assess¬ 
ment, the evidence may be considered in connection with a claim 
for abatement, on Form 47, or for refunding, on Form 46. 


223 


Explanations of fruit distillers intended to show why assessments 
certified on Form 6983 should not he made, often show that greater 
care should be exercised by them in operating their distilleries under 
the internal-revenue laws. 

It is sometimes alleged, for example, that but one still has been 
used, while the distiller is charged with the capacity of two stills. 
Upon examination it is found that the two stills have been registered 
(Form 26) for use and that the distiller had not afterwards regis¬ 
tered one of them not for use (Form 26), nor made application on 
Form 143 for reduction of capacity. The records of this office, there¬ 
fore, show the capacity of the distillery to be the capacity of the two 
stills as shown by the survey, and not merely the capacity of the one 
still which the distiller actually used. The law, moreover, requires 
the Commissioner to assess the tax on the deficiency in production 
below 80 per cent of the capacity as fixed by the lawful survey—that 
is, in this case, on the deficiency below 80 per cent of the surveyed 
capacity of the two stills. Collectors will please call the special 
attention of their deputies and fruit-brandy distillers to this matter. 

Many distillers claim that the failure to produce the required 
capacity is due to the use of inferior, green, or overripe fruit. The 
distiller who uses poor materials, whether grain or fruit, does so at 
his own risk. 

It is also expected of distillers that they shall use good machinery 
and apparatus. The fact that a tub or a still is leaky is not of itself 
a sufficient reason for omitting an assessment for deficiency. Fruit 
distillers should take special care to see that all vessels to be used are 
made water-tight, and are put in thorough repair before the com¬ 
mencement of the distilling season. These precautions will, it is 
believed, greatly lessen the occasion for making assessments caused 
by loss of cider, singlings, or other materials. 

If, however, a distiller is notified on Form 6983 of any deficiency, 
he should at once sign the paper in presence of a witness (who should 
also sign), and return the paper to the collector. If the return is 
not made within thirty days, the deputy collector should send a cer¬ 
tificate to the collector to the effect that the notice was delivered to 
the distiller in person, or mailed to him, as the case may be, and give 
the month and year in which liability is incurred, and the amount of 
tax due. 

If the proposed assessment against a fruit distiller is occasioned in 
whole or in part by an unavoidable accident or a misunderstanding 
of the law and regulations, the instructions to grain distillers as to 
submitting evidence will apply. The deputy collector should certify 
in detail, giving estimates of the loss of spirits, so that the true lia¬ 
bility may be readily ascertained by the collector and determined by 
the Commissioner. 


224 


Collectors should see that copies of these Regulations are placed in 
the hands of every fruit distiller in their respective districts, and 
receipts taken therefor on Form No. 163, revised. Copies of the 
Regulations and Form No. 163, revised, may be obtained by requisi¬ 
tion on this office. 

Evidence intended to show that a proposed spirit-deficiency assess¬ 
ment should not be made, if forwarded to this office without the 
deputy collectors certificate and the collector’s recommendation, will 
be filed in this office, and may be considered in connection with a 
claim for abatement on Form 47, or for refunding on Form 46, but 
can not be regarded as sufficient to warrant the omission of the pro¬ 
posed assessment. 

SCHEDULE or RETURNS ON FORM 59| ON FORM 412. 

Collectors will schedule on Form 412 every return on Form 59J 
received by them during each calendar month, and transmit said 
schedule to the Commissioner of Internal Revenue, accompanied by 
a copy of each return therein specified, marked “ To the Commis¬ 
sioner for review,” on or before the 10th day of each month succeed¬ 
ing that for which the schedule is made. 

The returns, Form 59J, should be scheduled in the order of the 
distillery numbers, beginning with the lowest. 

When more than two packages (numbered consecutively) are re¬ 
ported on the same return, Form 594, the first and last numbers 
should be entered in column 3 on this schedule, separated by the 
word “ to.” 

When the serial numbers of packages or of the tax-paid stamps 
are not in sequence, separate lines must be used on Form 412. 

The utmost care should be taken to insure the transmission to the 
collector’s office of reports on Form 59J from gauging officers of all 
fruit brandy gauged by them; and, when received by the collector, 
such reports must be scheduled on Form 412, as above described, 
and one copy of each report, indorsed “ To the Commissioner for 
review,” forwarded with the schedule to the Commissioner, one copy 
attached to the Form 15, and the third copy retained by the collector. 

Collectors will not accept reports on Form 59-| of brandy removed 
to special bonded warehouse or transferred to a winery unless column 
14 is properly filled by the gauger. 

In months when no returns on Form 594 are received and no brandy 
tax paid nor reported for assessment of tax, the words “ Nothing to 
report” 1 will be written across the face of the schedule on Form 412 
forwarded -for that month. 

Packages produced at the same distillery must be numbered in 
regular sequence, continuing from year to year, without regard to 
change in ownership or the fact that the same distillery is operated 


by more than one distiller, beginning with Xo. 1 for the first package 
produced, and no two or more of such packages should bear the 
same number. 

To prevent duplication and omission of numbers, the collector, at 
the beginning of the season at each fruit distillery, should furnish 
the gauger with the proper serial number, which he may determine 
by reference to his record 50; lie will also refer to said record in pre¬ 
paring this schedule, and when it is found that the serial number has 
been repeated in any instance, the return, Form 59on which the 
repetition occurs must be immediately returned to the gauger for 
correction, with instructions to change the number on the package 
accordingly, where practicable. 


REPORT OF FRUlt BRANDY TAX PAID OR RETURNED FOR ASSESSMENT OF TAX. 

Collectors will also report on Form 412 in detail the fruit brandy 
tax paid or reported for assessment of tax in their respective districts 
during the month covered by the report. 

Brandy scheduled on Form 412, but not tax paid or otherwise- 
disposed of during the calendar month in which the returns on Form 
59J were received at the collector’s office, will be reported on the 
schedule made for the succeeding month under the written heading 
“ Brandy previously scheduled disposed of this month.” This report 
will follow the schedule of returns on Form 59-| received during the 
calendar month, and columns 1, 2, 3, and 4 of Form 412 will be filled 
in every case, and columns 5 and 6, or 7, as the transaction may 
require. 

Fruit brandy not removed from the distillery for deposit in a 
special bonded warehouse, or for fortification of sweet wines, or not 
tax paid is required to be reported by the collector for assessment of 
tax on his monthly list, Form 23, next succeeding the month in which 
the brandy was produced. 

If the tax on the brandy is paid by stamps, the date of such pay¬ 
ment will be entered in column 5 of Form 412 and the serial number 
of the tax-paid stamps affixed will be entered in column 6. 

If the tax on the brandy is reported for assessment, the monthly 
list on which reported will be entered in column 7. 

When brandy is reported for assessment, or has been removed to 
special bonded warehouse, in either case that is a final disposition 
thereof so far as Form 412 is concerned, and brandy so disposed of 
must not be reported on Form 412, when tax paid. 

Packages containing less than 10 taxable gallons of brandy each 
will not be given a serial number unless the tax thereon is paid by 
stamps, and in case of such unnumbered casks the abbreviation 


56815—08-15 


226 


a Rem.” (signifying remnant) will be entered in column 3 of 
Fbrm 412. 

But one remnant of the same kind of brandy will be gauged for a 
fruit distiller during each season. 

Where less than 10 taxable gallons are found at a distillery oper¬ 
ating for the season, the gauger will report to the collector the wine 
gallons and the proof of such brandy upon his return on Form 192. 
The brandy thus reported will be included in the next numbered 
package produced from the same material by the distiller. The 
gauger will state separately each month’s production comprised in 
the package in a footnote on his return, Form 59-J. 

The blank spaces in the heading as well as on the indorsement 
fold will be filled in all cases, and the accuracy of the schedule must 
be carefully verified with the collector’s records before transmission. 

USE OF ALCOHOLIC VAPOR IN THE MANUFACTURE OF VINEGAR. 

Section 3282, Revised Statutes, as amended by the act of March 1, 
1879, reads as follows; 

No mash, wort, or wash, fit for distillation or for the production of 
spirits or alcohol, shall be made or fermented in any building or on 
any premises other than a distillery duly authorized according to law; 
and no mash, wort, or wash so made and fermented shall be sold or 
removed from any distillery before being distilled; and no person, 
other than an authorized distiller, shall, by distillation, or by any 
other process, separate the alcoholic spirits from any fermented mash, 
wort, or wash; and no person shall use spirits or alcohol in manu¬ 
facturing vinegar or any other article, or in an}^ process of manufac¬ 
ture whatever, unless the spirits or alcohol so used shall have been 
produced in an authorized distillery and the tax thereon paid. Every 
person who violates any provision of this section shall be fined for 
each offense not less than five hundred dollars nor more than five 
thousand dollars, and be imprisoned not less than six months nor 
more than two years: Provided further , That nothing in this section 
shall be construed to apply to fermented liquors, or to fermented 
liquids used for the manufacture of vinegar exclusively. But no 
worm, gooseneck, pipe, conductor, or contrivance of any description 
whatsoever whereby vapor might in any manner be conveyed away 
and converted into distilled spirits, shall be used or employed or be 
fastened to or connected with any vaporizing apparatus used for the 
manufacture of vinegar; nor shall any worm be permitted on or near 
the premises where such vaporizing process is carried on. Nor shall 
any vinegar factory, for the manufacture of vinegar as aforesaid, be 
permitted within six hundred feet of any distillery or rectifying 
house. But it shall be lawful for manufacturers bf vinegar to "sep¬ 
arate, by a vaporizing process, the alcoholic property from the mash 
produced by them, and condense the same by introducing it into the 
water or other liquid used in making vinegar. No person, however, 
shall remove, or cause to be removed, from any vinegar factory or 
place where vinegar is made, any vinegar or other fluid or material 



containing a greater proportion than two per centum of proof spirits. 
Any violation of this provision shall incur a forfeiture of the vinegar, 
fluid, or material containing such proof spirits, and shall subject the 
person or persons guilty of removing the same to the punishment 
provided for any violation of this section. And all the provisions of 
sections thirty-two hundred and seventy-six, thirty-two hundred and 
seventy-seven, and thirty-two hundred and seventy-eight of the Re¬ 
vised Statutes of the United States are hereby extended and made 
applicable to all premises whereon vinegar is manufactured, to all 
manufacturers of vinegar and their workmen or other persons em¬ 
ployed by them. 

The section, as amended, no longer contains the restrictions for¬ 
bidding the use of alcoholic vapor and the distillation of fermented 
liquids in the manufacture of vinegar, and the manufacturers of 
vinegar are expressly authorized to separate by a vaporizing process 
the alcoholic property from the mash produced by them, and to con¬ 
dense the same by introducing it into the water or other liquid used 
in making vinegar. But it seems clear that the privilege as granted 
in the act of March 1, 1879, is limited; that it is not intended to per¬ 
mit the manufacture of distilled spirits; that the mingling of the 
alcohol vapor with the water or other liquid must be confined to the 
purpose contemplated by the law; and that any manner of contriv¬ 
ance whereby the vapor of alcohol could be conducted into a recep¬ 
tacle where it would or could be condensed by itself, and so become 
distilled spirits, or any contrivance for cooling the liquid which 
receives the vapor to such a degree that a small or limited quantity 
of water or other liquid would be enabled to receive and condense an 
unlimited quantity of alcohol, is prohibited. 

Where artificial means are employed for condensing at vinegar 
factories it is required that the condensing vessels shall be open and 
uncovered, and that the condensing apparatus shall be simple in its 
construction. 

Closed or covered condensers are permitted only in cases where the 
alcoholic vapor is condensed simply by being introduced into the liquid 
used in the production of vinegar, without the use of artificial means 
for cooling the liquid, and in such cases the condensers must be pro¬ 
vided with a manhole that will admit of a ready examination of the 
whole interior of the condensing vessel. 

But the use of any worm, goose neck, pipe, conductor, or contriv¬ 
ance of any description, whereby the vapor might be removed and 
converted into distilled spirits, is interdicted, “ nor shall any worm be 
permitted on or near the premises where such vaporizing process is 
carried on.” 

The absolute prohibition by the statute of a worm upon or near 
the premises gives additional force to the otherwise clear intent of 
the law, that the alcoholic vapor which the vinegar manufacturer is at 


228 


liberty to separate from the mash shall not only be conducted to the 
liquid receiving the same by the shortest and most direct line practi¬ 
cable, but that the pipes used for this purpose must not be surrounded 
with water and must be capable of examination for their entire length. 

A closed coil can not be maintained in a mash tub on the premises 
except under the following conditions: If a coil is employed for the 
conveyance of water for the purpose of cooling the mash, the upper 
portion of the coil must be open, with flanges projecting upward, so 
as to prevent overflow, making the upper ring of the coil in effect an 
open trough; or, the coil within the tub may be closed on condition 
that the pipe is left open for a distance of several feet immediately 
after it leaves the tub and is properly protected by flanges, so as to 
form in effect an open trough several feet in length. 

It is expected that collectors will exercise a strict surveillance over 
each and every apparatus set up and used in their respective districts 
for the manufacture of vinegar by the introduction of alcoholic vapor 
into any liquid, and will in so doing be governed by the general prin¬ 
ciples as above set forth; and will also see that such an apparatus is 
not set up within GOO feet of any distillery or rectifying house, except 
as provided hereinafter under the head of “ Vinegar factories estab¬ 
lished prior to March 1, 1870.” 

The provisions of sections 327G, 3277, and 3278, Revised Statutes, 
are applicable to all premises whereon vinegar is manufactured, and 
to the manufacturers, their workmen, and employees. 

Revenue officers have the same right to enter into vinegar factories 
and to examine the premises, apparatus, methods of operation, ma¬ 
terial in course of manufacture, and the product, as they have at dis¬ 
tilleries and rectifying houses; and any refusal to admit them, or 
hindrance or obstruction of them in the performance of their duty, is 
punishable with like penalties. 

Collectors and their deputies and revenue agents are expected and 
required to visit all vinegar factories within their districts frequently 
and to carefully examine the processes of manufacture, the machinery 
or apparatus in use, and the character of the product, and make due 
report thereon. 

Xo apparatus for the separation of the vapor, other than by the 
shortest and most direct practicable method of introducing the vapor 
from the mash to and into the fluid intended to receive and condense 
it, is warranted by law, and the presence of any worm or other con¬ 
trivance whereby the vapor can be condensed before or without infu¬ 
sion into water or some other liquid or material should be promptly 
reported to the collector of the district and to this office. 

When water is used as the recipient of the alcoholic vapor, the 
resulting mixture should be frequently tested, to see to what proof it 
is raised and at what proof it is acetified. 


229 


^No person shall remove, or cause to be removed, from any vinegar 
factory or place where vinegar is made, any vinegar or other fluid or 
material containing a greater proportion than 2 per cent of proof 
spirits. 

The vinegar or fluid removed from vinegar factories should from 
time to time be tested, to ascertain if it contains any greater propor¬ 
tion of proof spirits than is permitted by law. 

The production at vinegar factories of low wines exceeding 20 per 
cent in proof is not to be permitted, except when specially authorized 
by the Commissioner of Internal Revenue, which authority will be 
given only when the necessity therefor is clearly shown. 

REGISTRY OF STILLS SET UP FOR THE PRODUCTION OF VINEGAR. 

Under the provisions of section 3258, Revised Statutes, every person 
having in his possession or custody, or under his control, any still or 
distilling apparatus set up is required to register the same with the 
collector of the district in which it is, and forfeiture, penalty, and 
imprisonment are provided for failure to so register. 

This law applies to all stills or distilling apparatus of whatever size 
and for whatever purpose intended, and accordingly collectors will 
invariably require the registration of all distilling apparatus set up 
for the manufacture of vinegar. 

This registry will be made on Form 2G, in duplicate, as directed 
herein under the head of “ Registry of stills,” care being taken to 
enter in the column “ For what purpose to be used,” on the form, the 
words “ Making vinegar.” 

VINEGAR FACTORIES ESTABLISHED PRIOR TO MARCH 1, 1879. 

By an act approved June II, 1879, it is provided: 

That any vinegar factory for the manufacture of vinegar, estab¬ 
lished and operated as a vinegar factory prior to March first, eighteen 
hundred and seventy-nine, may be operated for the manufacture of 
vinegar by the use of alcoholic vapor within such distance less than 
six hundred feet of any distillery or rectifying house under such 
regulations as the Commissioner of Internal Revenue may prescribe 
with the approval of the Secretary of the Treasury. 

It is therefore prescribed that any person desiring to operate a 
vinegar factory for the manufacture of vinegar by the use of alco¬ 
holic vapor, which factory was established and operated as a vinegar 
factory prior to March 1, 1879, and is now situated within less than 
GOO feet of a distillery or rectifying house, may make application for 
that purpose to the collector of his district, setting forth when said 
factory was established, and for how long a period previous to March 
1, 1879, it was actually used and occupied for the manufacture of 
vinegar, and the distance between the premises and the premises 


230 


occupied by the nearest distiller or rectifier. The collector shall 
thereupon verify the facts stated in said application, and forward it 
to this office with his certificate. 

Upon receipt thereof, if the fact of operation before March 1, 1879, 
be clearly proven, the collector will be notified to permit such factory 
to be operated by the use of alcoholic vapor within any distance from 
a distillery or rectifying house not less than 200 feet in a direct line, 
provided there be no means of communication between the different 
premises other than upon and over a public street or highway, or to 
be operated within a less distance than 200 feet in a direct line from 
a rectifying house w T here the rectification of spirits is carried on with¬ 
out the use of stills or leach tubs, provided the factory and rectifying 
house are separated from each other by a public street or highway at 
least 40 feet in width. 

Xo distillery or rectifying house is permitted to be located within 
600 feet of an established vinegar factory employing the vaporizing 
process. 

IMITATION SPARKLING WINES AND COMPOUND LIQUORS TO BE 
SOLD AS WINE OR AS A SUBSTITUTE FOR WINE. 

Section 3328, United States Kevised Statutes, provides as follows: 

On all wines, liquors, or compounds known or denominated as wine, 
and made in imitation of sparkling wine or champagne, but not made 
from grapes grown in the United States, and on all liquors not made 
from grapes, currants, rhubarb, or berries grown in the United States, 
but produced by being rectified or mixed with distilled spirits or by 
the infusion of any matter in spirits, to be sold as wine, or as a substi¬ 
tute for wine, there shall be levied and collected a tax of 10 cents per 
bottle or package containing not more than one pint, or of 20 cents 
per bottle or package containing more than one pint and not more 
than one quart, and at the same rate for any larger quantity of such 
merchandise, however the same may be put up or whatever may be the 
package. The Commissioner of Internal Revenue shall cause to be 
prepared suitable and special stamps denoting the tax herein im¬ 
posed, to be affixed to each bottle or package containing such mer¬ 
chandise, by the person manufacturing, compounding, or putting up 
the same, before removal from the place of manufacture, compound¬ 
ing, or putting up; and said stamp shall be affixed and canceled in 
such manner as the Commissioner may prescribe; and the absence of 
such stamp from any bottle or package containing such merchandise 
shall be prima facie evidence that the tax thereon has not been paid, 
and such merchandise shall be forfeited to the United States. Any 
person counterfeiting, altering, or reusing.said stamps shall be subject 
to the same penalties as are imposed for the same offenses in relation 
to proprietary stamps. 

Sparkling wines are produced by two processes. One is what is 
known as the natural process, by which the carbonic-acid gas, which 







231 


imparts the sparkling property to the wine, is evolved by fermenta¬ 
tion. In the artificial process the carbonic-acid gas is infused into 
the wine. The products of the former process are recognized as genu¬ 
ine sparkling wines, and are not subject to taxation under the internal- 
revenue laws; the products of the latter are imitation sparkling 
wines, and are subject to taxation under,said section 3328, unless made 
from grapes grown in the United States. The use of any other ma¬ 
terial than such as may be necessary to convert the domestic grape 
into sparkling wine renders the article produced subject to tax. 

The infusion of carbonic-acid gas into wine made exclusively from 
grapes grown in the United States, and the u fortifying ” of the same 
by the addition of not exceeding 10 per cent of proof spirits is, how¬ 
ever, deemed a part of the manufacture of genuine native wine, and 
is therefore permitted without rendering the product liable to taxa¬ 
tion under section 3328 Revised Statutes, or constituting the producer 
a rectifier. 

The infusion of carbonic-acid gas into wine made from currants, 
rhubarb, or berries, however, renders the product taxable. 

Collectors should watch carefully all establishments in their dis¬ 
tricts where they have reason to suppose that such imitation wines 
are manufactured, and see that the proprietors of the same comply 
with all the requirements of the law. 

The second class of liquors taxed under said section consists of those 
produced by being rectified, or mixed with distilled spirits, or by the 
infusion of any matter in spirits to be sold as wine or as a substitute 
for wine. Liquors made directly from grapes, currants, rhubarb, or 
berries grown in the United States, without the admixture of distilled 
spirits, are not taxable under this section. To render a liquor that has 
been produced by being rectified or mixed with distilled spirits or by 
the infusion of any matter in spirits liable to tax, it must be sold as 
wine or as a substitute for wine. This language includes not only 
those liquors that are sold under the specific name of wine, but also 
such as are of a similar character to wine and are popularly classed 
as wine in contradistinction to spirituous liquors. Genuine wine is 
the product of the vinous fermentation of certain fruits, but the arti¬ 
cle taxed under this section is a compound liquor, having as a basis 
distilled spirits, and sold as wine or as a substitute for wine. Revenue 
officers, in determining the liability of this class of liquors to tax, will 
be guided in a great measure by the manner in which the liquors are 
put upon the market and offered to the public, the general character 
of the liquor, and whether it is sold under the general name of wine 
or is represented as possessing the properties of or being a substitute 
for wine. 


232 


Under section 3244, Revised Statutes, all persons manufacturing 
the imitation sparkling wines and compound liquors described in sec¬ 
tion 3328, Revised Statutes, are rectifiers, and liable to all the require¬ 
ments of law as such. In their monthU return, Form 45, which if 
not rendered voluntarily shall be demanded by the collector each 
month, they will report on a separate line the quantity of imitation 
sparkling wine not made from grapes grown in the United States, and 
all liquors produced by being rectified or mixed with distilled spirits, 
or by the infusion of any matter in spirits to be sold as wine or as a 
substitute for wine, manufactured, compounded, or put up by them 
during the month, and the quantity of such merchandise removed 
from the place of manufacture. 

Suitable and special stamps have been prepared by the Commis¬ 
sioner of Internal Revenue denoting the tax imposed by this section, 
as follows: Stamps for imitation wines or substitute, 1 pint, 10 cents: 
stamps for imitation wines or substitute, 1 quart, 20 cents. These 
stamps are of the kind known as “strip stamps,” and will be issued 
in sheets. They are designed to be placed over the cork or stopper 
of the bottle in such manner that in opening the same the stamps 
shall be effectually destroyed. These stamps will be accounted for 
by the collectors on the same forms as stamps for distilled spirits. 
They will be sold by collectors to persons manufacturing, compound¬ 
ing, or putting up the wines and liquors described therein. These 
stamps must be canceled by such persons writing or imprinting thereon 
in ink the name of the person or firm affixing the same, and the day, 
month, and year of such canceling, and must be so affixed to the bot¬ 
tle or package that in'opening the same the stamp shall be effectually 
destroyed. 

REGULATIONS INCONSISTENT HEREWITH REVOKED. 

All regulations and instructions heretofore published inconsistent 
with these regulations are hereby revoked. 

Collectors will furnish distillers, rectifiers, wholesale liquor dealers, 
and vinegar makers employing the vaporizing process with copies of 
these regulations, and all officers of internal revenue will see that the 
regulations are promptly and strictly carried out; and any neglect 
or failure to comply with the same on the part of any officer will be 
deemed sufficient cause for his immediate dismissal from office. 

John G. Capers, 

Commissioner . 

Approved: 

J. B. Reynolds, 

Acting Secretary of the Treasury. 


APPENDIX. 


CONCERNING THE REMISSION OF TAX ON DISTILLED SPIRITS 

LOST BY CASUALTY, USED FOR SCIENTIFIC PURPOSES, OR 

WITHDRAWN FOR USE OF THE UNITED STATES. 

ABATEMENT OR. REFUNDING OF TAXES ON DISTILLED SPIRITS DESTROYED 

BY CASUALTY. 

Section 3221, Revised Statutes, as amended by section 0 of the- act 
of March 1, 1879, provides that— 

The Secretary of the Treasury, upon the production to him of 
satisfactory proof of the actual destruction by accidental fire or other 
casualty, and without fraud, collusion, or negligence of the owner 
thereof, of any distilled spirits, while the same remained in the cus¬ 
tody of any officer of internal revenue in any distillery warehouse, 
or bonded warehouse of the United States, and before the tax thereon 
has been paid, may abate the amount of internal taxes accruing 
thereon, and may cancel any warehouse bond or enter satisfaction 
thereon, in whole or in part, as the case may be. And if such taxes 
have been collected since the destruction of said spirits, the said 
Secretary shall refund the same to the owners thereof out of any 
moneys in the Treasury not otherwise appropriated. And when any 
distilled spirits are hereafter destroyed by accidental fire or other 
casualty , without any fraud , collusion , or negligence of the owner 
thereof , after the time when the same should have been drawn off 
by the gauger and placed in the distillery warehouse provided by law , 
no tax shall be collected on such spirits so destroyed , or , if collected r , 
it shall be refunded upon the production of satisfactory proof that 
the spirits were destroyed as herein specified. 

[Liability for tax on bonded spirits accrues immediately upon the 
destruction of the spirits. (Insurance Company v. Thompson et al., 
5 Otto, 547.)] 

[Liability of obligors on warehousing bonds to pay the tax on 
spirits destroyed in a distillery warehouse can be relieved only in 
the manner prescribed by the statute. (Farrell v. United States, 9 
Otto, 221; 25 Int. Rev. Rec., 83.)] 

[The statute (sec. 3221, Rev. Stat.) contemplates that the burden 
of proof shall be on the applicant. (Opinion of Solicitor of the 
Treasury, letter to Secretary of the Treasury of October 21, 1885.)] 

a For regulations governing the exportation of distilled spirits with benefit of 
drawback, see Appendix to Internal Revenue Regulations No. 29. 

( 233 ) 




234 


[For construction of law relative to loss of spirits from packages 
stored in bonded warehouse. (31 Int. Rev. Rec., 189.)] 

[Leakage not a casualty. (40 Int. Rev. Rec., 173.)] 

[The collapse of a barrel filled with whisky from the pressure of 
other barrels superimposed upon it is not a casualty within the mean¬ 
ing of the law. (40 Int. Rev. Rec., 237.)] 

[Destruction of bonded spirits while undergoing an artificial aging 
process, not a casualty within the meaning of the statute. (Treas. 
Dec. No. 1010, June 11, 1906.)] 

[Casualty means an accident, an event not to be forseen or guarded 
against. Excessive and unusual summer heat is not a casualty, 
neither are undiscovered worm holes in whisky barrels a casualty 
within the meaning of this section. (Crystal Springs Distilling 
Company v. Cox, 47 Fed. Rep., 693; 37 Int. Rev. Rec., 328.) De¬ 
cision affirmed (Circuit Court of Appeals, 1892) 49 Fed. Rep., 555.] 
[Proof required in cases of destruction of distilled spirits by incen¬ 
diaries. (43 Int. Rev. Rec., 285.)] 

[Denial of claim for refund of tax on spirits alleged to have been 
destroyed by an incendiary fire; insufficient evidence. (42 Int. Rev. 
Rec., 49.)] ' 

[Where spirits are withdrawn from warehouse tax paid and 
stamped, and are afterwards destroyed by accident, the tax can not 
be refunded. (Treas. Dec. (vol. 1, 1898), No. 18996.)] 

[No provision authorizing relief when spirits are stolen from ware¬ 
house. (Treas. Dec. (1898), No. 19520.)] 

Section 3222 provides that— 

The preceding section shall take effect in all cases of loss or destruc¬ 
tion of distilled spirits as aforesaid, which have occurred since Janu¬ 
ary one, eighteen hundred and sixty-eight. 

[The foregoing section does not embrace the amendment to section 
3221, Revised Statutes, by section 6, act of March 1, 1879, which by 
its own terms relates only to spirits thereafter destroyed.\ 

Section 3223, Revised Statutes, as amended by section 3 of the act 
of March 1, 1879, provides— 

When the owners of distilled spirits in the cases provided for by the 
two preceding sections may be indemnified, against such tax by a valid 
claim of insurance, for a sum greater than the actual value of the dis¬ 
tilled spirits before and without the tax being paid , the tax shall not 
be remitted to the extent of such insurance . 

[The liability for tax on bonded spirits is an insurable interest. 
(Ins. Co. v . Thompson et al., 5 Otto, 547.)] 

[An insurance policy upon whisky in bond,-without reference to 
the Government tax, entitles the assured to include the tax in his 
recovery in case of loss, if the assured is liable for the tax. (Hedger 


v. Union Ins. Co., circuit court, dist. of Ivy., Fed. Rep., vol. xvii, 
498.)]“ 

( 1 .) 

CLAIMS FOR REMISSION OF TAX ON SPIRITS DESTROYED IN BONDED 

WAREHOUSE. 

To obtain the relief afforded by the foregoing provisions of law, 
the owner of the spirits destroyed will file with the collector in whose 
district the loss occurred a sworn statement setting forth the date, 
origin, and nature of the destruction ; the quantity of spirits lost by 
leakage, evaporation, or other cause prior to the casualty; the quan¬ 
tity actually destroyed by the casualty (specifying the number of 
packages, the serial number of each package, the serial number of 
the stamp affixed thereto, and the actual contents thereof in wine, 
proof, and taxable gallons) ; the quantity of spirits remaining after 
the casualty; that the destruction of the spirits was accidental, and 
without any fraud, collusion, or negligence on his part: that the 
spirits were owned by him at the time of their destruction, and that 
he is not in any manner indemnified against the tax by any valid 
claim of insurance. The claimant will also state in his application 
whether any indemnity against the loss of the spirits or any of the 
distillery property was held by him or by any other person at the time 
the loss occurred, and if so held, the amount thereof, and the value 
of the property so insured, and the amount of insurance paid. 

The statement as to the insurance should be in detail, showing the 
amount and date of each policy, and the value of each class of spirits 
covered by such policies. 

Certified copies of all policies covering the spirits destroyed will 
also be furnished where the amount thereof exceeds the value of such 
spirits. 

In addition to the foregoing statement, the sworn statements of the 
gauger and storekeeper on duty at the warehouse at the date of the 
destruction must be filed with the collector, setting forth the quantity 
of spirits in the warehouse at that date and the quantity remaining 
after the casualtv: that no unauthorized allowance or withdrawal has 


“In view of the foregoing statute (sec. 3223, Itev. Stat., as amended) and the 
decisions above cited, it is held, in cases where it is not expressly stipulated 
in the policies of insurance that the Government tax is not included in the in¬ 
surance on the spirits, that the owner of the spirits is not entitled to any 
allowance, under section 3221, Revised Statutes, on so much of the tax as is 
equal to the valid insurance in excess of the actual value of the spirits exclusive 
of the tax. For instance, if the market value of a gallon of spirits, exclusive 
of the tax, is 60 cents per gallon, and the insurance on the same is $1, the 
amount abatable thereon, under section 3221, is only 70 cents, the tax ($1.10 
per gallon) not being remitted to the extent of the excessive insurance, which 
is 40 cents. 



been made or permitted by them to be made in favor of the claimant 
or any other person; that they believe the spirits to have been actu¬ 
ally and accidentally destroyed, without fraud, collusion, or negli¬ 
gence of the owner thereof. 

In case the storekeeper or gauger, or both, were present at the 
destruction of the spirits they will, if possible, state the origin of the 
fire or other casualty, with the circumstances connected with the 
same. They will also state what efforts were made to prevent the 
destruction of the warehouse and contents, what efforts were made to 
remove the spirits to a place of safety, and whether, in their opinion, 
the actions of the owner of the spirits indicated a real desire to save 
the same from destruction. 

If not present at the time of destruction they will so state, giving 
the date of their last visit at the warehouse, and whether, in their 
opinion, the alleged loss of the spirits was without fraud, collusion, 
or negligence of the owner. 

Claimants and collectors should bear in mind that what is needed 
is a clear statement of the facts of a case by eyewitnesses or those 
having a personal knowledge of what they assert, showing just how 
and when the accident or loss occurred. 

When the Secretary has the facts before him he can judge whether 
the assertions and the opinions of affiants and officers are correct as 
to the matter of fraud or negligence. 

Whenever a collector is advised of the destruction of any distilled 
spirits while stored in a distillery warehouse or bonded warehouse in 
his district, he will himself, or by his deputy, immediately visit the 
premises and 'make a thorough investigation as to the destruction 
reported. He will, if possible, obtain the sworn statements of at least 
three disinterested persons who witnessed the destruction or had 
knowledge of the circumstances connected therewith, as to the nature 
of the fire or other casualty, as to the efforts made to save the spirits 
from destruction, and as to the general character of the claimant, 
lie will also ascertain the market value of the spirits at the time of 
their destruction and the amount of indemnity covered by insurance, 
and in case he reports no insurance he will state the source of his 
information. 

After having made the investigation here ordered and having re¬ 
ceived the application and other evidence of loss, the collector will 
forward to the Commissioner of Internal Revenue all the papers in 
the case, together with a report of the investigation made by him, 
and he will state in his report the market value of the spirits at the 
time of their destruction, the amount of indemnity covered by insur¬ 
ance, and his opinion as to the general character of the claimant, the 
reliability of the several witnesses, and as to the propriety of allowing 
the claim, 


Should the result of an investigation into an alleged loss indicate 
that fraud has been committed or attempted, the collector will forward 
at once a report of such investigation, without awaiting the filing of 
the application of the owner of the spirits; and in any case, should 
the owner of any distilled spirits claimed to have been destroyed 
neglect to file the application and other evidence of loss, as required 
by the foregoing regulations, within thirty days from the date of the 
alleged destruction, the collector will at once forward to the Commis¬ 
sioner a full report of the investigation required of him to be made. 

In addition to the investigation here required, collectors will, on 
receiving notice of the alleged loss of any bonded spirits, report such 
spirits on their next list, Form 23, also on Forms 134a and 364; and 
they will at once notify the distiller of the proposed assessment. 

Where claim for abatement of the tax so assessed is filed, as herein 
provided, application for delay in the collection of such tax, pending 
consideration of the claim, may be made as in other case of assess¬ 
ment. Unless, however, such delay is granted by the Commissioner 
of Internal Revenue, the collector will proceed to collect the tax; and, 
if not collectible on the assessment, he will immediately notify the 
Commissioner of the fact and wait instructions as to placing the ware¬ 
housing bonds covering such spirits in the hands of the United States 
district attorney for suit. 

When the claim is received by the Commissioner lie will cause it to 
be examined and compared with the files and records in his office, and 
having obtained such additional evidence in the case as may, in his 
judgment, be necessary, he will indorse thereon his opinion in regard 
to the validity of the claim and recommend such disposition of it as 
he may deem proper. lie will thereupon transmit the claim, with all 
the papers, to the Secretary of the Treasury, who will return the same 
to the Commissioner of Internal Revenue, with his final decision in 
the case, as provided by law. And the collector will, upon notice that 
the claim or any part thereof has been allowed, take credit, on the 
proper line on his bonded account, Forrm 94rq for the amount of such 
allowance, forwarding as a voucher a copy of the notice authorizing 
the credit to be taken. 

In case the claim is 'for the refunding of taxes paid on distilled 
spirits subsequent to their destruction, it will be made out on Form 
46, and, in addition to the certificates required by that form, will be 
accompanied by the affidavits of the gauger, storekeeper, and the 
owner of the spirits, and report of the collector, as in the case of a 
claim for an allowance in the bonded account. 

Applications for the rehearing and reconsideration of rejected 
claims must be addressed to the Secretary of the Treasury, and must 
set forth under oath the nature of the additional proof which it is 
proposed to present and which must be new and material, not simply 


238 


cumulative, and which the applicant must allege was not known to 
him* or could not be obtained by him, while the claim was under con¬ 
sideration by the Department. If the application should be granted, 
notice thereof will be sent to the Commissioner of Internal Revenue, 
who will issue the necessary instructions for taking additional testi¬ 
mony in the case. No ex parte affidavit will be received in the case 
of such reopened claims. 

( 2 .) 

CLAIMS FOR REMISSION OF TAX ON SPIRITS LOST BY CASUALTY WHILE 
IN RECEIVING CISTERNS. 

Under the amendment to section 3221, Revised Statutes, before 
quoted, the Secretary of the Treasury is authorized to abate the taxes 
on spirits accidentally destroyed in the receiving cisterns after March 
1, 1879, and after they should have been drawn off by the gauger and 
placed in a distiller}^ warehouse, as provided by section 3267, Revised 
Statutes. This section provides that— 

On the third day after the spirits are conveyed into such cistern 
they shall be drawn off into casks, under the supervision of such 
gauger in the presence of the storekeeper, and be removed directly 
to the distillery warehouse; but on special application to the collector 
by the owner, agent, or superintendent of any distillery the spirits 
may be drawn off from the said cisterns, under the supervision of the 
gauger, at any time previous to the third day. 

Where the remission of tax on spirits destroyed in receiving cis¬ 
terns is claimed under section 3221, Revised Statutes, the proof of loss 
hereinbefore prescribed in case of destruction of spirits in distillery 
warehouse, so far as applicable, will be required in support of such 
claim, and in addition thereto the applicant will be required to show, 
to the satisfaction of the Secretary of the Treasury, that the spirits 
were destroyed “ after the time when the same should have been 
drawn off by the gauger and placed in the distillery icarehouse pro¬ 
vided by law ,” and that the delay in drawing off such spirits and the 
destruction of the spirits was due to no fault of the claimant or any 
of his agents or employees. 

WITHDRAWAL OF ALCOHOL FROM BOND FOR SCIENTIFIC 
PURPOSES. 

Section 3297 of the Revised Statutes of the United States provides 
that— 

The Secretary of the Treasury is authorized to grant permits to 
any incorporated or chartered scientific institution or college of learn¬ 
ing to withdraw alcohol in specified quantities from bond without 
payment of the internal-revenue tax on the same, or on the spirits 
from which the alcohol has been distilled, for the sole purpose of 
preserving specimens of anatomy, physiology, or natural history 


239 


belonging to such institution, or for use in its chemical laboratory: 
Provided , That applications for permits shall be made by the presi¬ 
dent or curator of such institution, who shall file a bond for double 
the amount of the tax on the alcohol to be withdrawn, with two good 
and sufficient sureties, to be approved by the Commissioner of In¬ 
ternal Revenue, and conditioned that the whole quantity of alcohol 
so withdrawn from bond shall be used for the purposes above 
specified, and for no other, and that the said president or curator shall 
comply with such other requirements and regulations as the Secretary 
of the T reasury may prescribe. And if any alcohol so obtained is 
used by any officer, as aforesaid, of such institution for any purposes 
other than that above specified, then the said officer or sureties shall 
pay the tax on the whole amount of alcohol withdrawn from bond, 
together with a like amount as a penalty in addition thereto. 

The provisions contained in the foregoing section are extended by 
the act of Congress approved May 3, 1878 (20 Stat., 48), which 
provides: 

That the Secretary of the Treasury be, and is hereby authorized to 
grant permits, as provided for in section thirty-two hundred and 
ninety-seven of the Revised Statutes of the United States, passed 
at the first session of the Forty-third Congress, to any scientific 
university or college of learning created and constituted such by 
any State or Territory under its laws, though not incorporated or 
chartered, upon the same terms and subject to the same restrictions 
and penalties, already provided by said section thirty-two hundred 
and ninety-seven: Provided further , That the bond required thereby 
may be executed by any officer of such university or college, or by any 
other person for it, and on its behalf, with two good and sufficient 
sureties, upon like conditions, and to be approved as by said section is 
provided. 


Note.— The privilege of withdrawing alcohol in bond for the purposes above 
specified is held to apply to all institutions of learning created and constituted 
as such under any State or Territorial law, and to hospitals similarly created 
and having connected therewith a training school for nurses, or where clinical 
lectures are delivered. 

In all such cases, however, the alcohol obtained must be used solely for the 
purposes specified in the statute, viz, for preserving specimens of anatomy, 
physiology, or natural history belonging to such institution, or for use in its 
clicmieal laboratory. 

The use of the alcohol outside of the chemical laboratory (except for the 
preservation of the specimens named) will under no circumstances be allowed; 
and its use in the chemical laboratory must be such as either to secure its 
actual destruction, as when burned in a spirit lamp, or destroy its identity as 
alcohol, as in making extracts, preparing ether or chloroform, or compounding 
pharmaceutical preparations to be used exclusively in the treatment of patients 
in the hospital to which the chemical laboratory is attached, and not to be sold 


to any person whatever. 

The term “ chemical laboratory,” employed in the statute, is also held not to 
include “physical,” “mechanical,” “electrical,” or “pathological” laboratories, 
or any other laboratory which has been developed since February 21, 1873, when 
the law was passed from which said section 3207 was taken, where such 
laboratories are separate and distinct departments, although in the same build¬ 
ing or room in which the chemical laboratory of the institution is located. 


240 


USE OF ALCOHOL BY HOSPITALS. 

Article 1. It will be noted that articles and preparations made or 
compounded , as hereinbefore indicated , and not the alcohol, may be 
used in the treatment of patients , and that the identity of the alcohol 
as such must be destroyed in the manufacture or compounding of 
such articles , etc. The use of the alcohol , therefore , either in a pure 
or diluted state , /W bathing patients , cleansing surgical instruments , 
burning in spirit lamps , efa., outside of the chemical laboratory can 
not be permitted under the statute named , and any unauthorized use 
of the alcohol will render the parties giving the required bond liable 
to “ fa# on the whole amount of alcohol withdrawn , together with 
a like amount as a penalty in addition thereto .” The use of alcohol 
for bathing patients or in surgical operations will be permitted , how¬ 
ever, where the alcohol is first mixed in the chemical laboratory with 
an antiseptic , and in such proportion as to change its identity and 
render it unfit for other purposes. Its use in such cases , however , 
tpeZZ be permitted only when such use is specifically set forth in the 
application and bond filed , and ivhere the wash or other antiseptic 
preparation is prepared according to a formula to be furnished with 
the application and approved by the Commissioner of Internal 
Revenue. 

As here indicated , the addition of water , or small quantities of 
aromatic drugs , reported in certain cases , will not be regarded as a 
compliance with these regulations; and the use of alcohol so diluted 
or prepared will render the bond liable to the tax and penalty im¬ 
posed. Nor should the alcohol be used for any purposes other than 
those specified in the application and bond; and in cases ivhere col¬ 
leges or other institutions obtaining alcohol have a hospital connected 
therewith , that fact should be stated in each application and bond 
filed. 

BOND AND APPLICATION TO BE FILED. 

Art. 2. When it is desired to withdraw alcohol for the benefit of 
an institution under either of the above provisions of law, the appli¬ 
cant will present to the collector of interned revenue in whose district 
the institution for which the withdrawal is to be made is situated an 
application to the Secretary of the Treasury for permit to withdraw 
such alcohol; and in case the institution named is an incorporated or 
chartered institution, the application will be made b}^ the president 
or curator, and in such cases a copy of the charter or articles of in¬ 
corporation should be annexed to the first application, and in case 
the institution is a “ scientific university or college of learning ” 
created under a general law of a State or Territory, that fact must 
be shown and an extract of the law given. In case of hospitals there 
should be filed, in addition to the required copy of articles of incor- 


241 


poration , evidence showing that the institution has a training school 
for nurses , or other educational features. The proofs so furnished, 
showing the institution to be entitled to the benefits of the statute, 
must be submitted to the Commissioner of Internal Revenue for his 
examination and approval. 

Art. 3. At the time of filing the first application the applicant will 
make and execute a bond in duplicate, signed by himself as principal, 
and (unless signed by a surety company) with two or more sureties, 
who shall not be officers of the institution in which the alcohol is to 
be used, but shall be residents of the United States judicial district 
in which such institution is located, conditioned that the whole quail- 
tit} T of alcohol so withdrawn shall be used for the purpose of pre¬ 
serving specimens of anatomy, physiology, or natural history belong¬ 
ing to the institution, or for use in the chemical laboratory of such 
institution, and for no other purpose. And withdrawals may be 
made from time to time under said bond until the same shall have, 
been revoked or canceled by order of the Secretary of the Treasury. 

The penal sum must not be less than $200, and never less than 
double the amount of tax on the alcohol withdrawn at any one time, 
and the time to be specified in the bond for the production of proof 
as to the use of the alcohol should in no case exceed two years. 

In filing applications for withdrawal the quantity of alcohol ap¬ 
plied for should in no case exceed the quantity that will he used dur¬ 
ing the time so specified in the bond. 

Collectors will in no case forward an application which will make 
or increase the tax liability beyond one-half of the penal sum named 
in the bond. 

When the application is made for an incorporated institution, under 
section 3297, Revised Statutes, the bond should be given by the presi¬ 
dent or curator of the institution as principal , whose name and official 
designation should appear in the recital of the bond. 

When the application is made for a university or college under the 
act of May 3, 1878, the bond may be signed by an officer of the in¬ 
stitution, or by any other person for it. The bond will be in the fol¬ 
lowing form, viz: 

BOND, FORM 432. 

Know all men by these presents, that---, of-, as 

principal, and-, of-, and-, of-, 

as sureties are held and firmly bound unto the United States of Amer¬ 
ica in the sum of-dollars, to be paid to the said United States; 

for the payment whereof we bind ourselves, our heirs, executors, and 
administrators, jointly and severally, firmly by these presents. 

Witness our hands and seals this the-day of-, nineteen 

hundred and-. 

56815—08-16 












242 


The condition of this obligation is such that whereas the above 

bounded-, principal, intends to withdraw from bonded 

warehouse, without payment of tax, certain alcohol for the sole pur¬ 
pose of preserving specimens of anatomy, physiology, or natural his¬ 
tory belonging to the a -, in the * 6 -•, of-, of c - 

and State of-; or for the sole purpose of use in the chemical 

laboratory of said institution in the following-described manner: d 


Now, therefore, if the entire quantity of alcohol so withdrawn by 
the said principal from time to time hereafter, and until this bond 
shall have been revoked or canceled by direction of the Secretary of 
the Treasury of the United States, shall be used by the said institu¬ 
tion, or the proper officer thereof, for the purposes above specified, 
and for no other purpose, and if the principal of said institution shall, 

as to each lot of alcohol so withdrawn, produce, within-months 

from the date of such withdrawal, to the collector of internal revenue 

for the e -district of the State of-, proof satisfactoiy to that 

officer and to the Commissioner of Internal Revenue that the said 
alcohol has been so used for the purposes above specified, and for no 
other purpose, and shall comply with such other requirements and 
regulations as the Secretary of the Treasury may prescribe, then this 
obligation to be void; otherwise, to be and remain in full force and 
virtue. 

And the obligors, for themselves, their heirs; executors, administra¬ 
tors, and assigns, do further covenant and agree with the United 
States, in case said alcohol, or any part thereof, shall be used for any 
purposes other than those above specified, well and truly to pay or 
cause to be paid to the collector aforesaid the tax on the whole amount 
of alcohol withdrawn from bond, together with a like amount as a 
penalty in addition thereto. 

-. [L.S.] 

-. [L.S.] 

-. [L.S.] 

Signed, sealed, and delivered in presence of—- 


a Here state the name of the institution or college. 

6 Town or city. 
c County or parish. 

d Here describe the mode of use. If intended for hospital use as provided in 
article 1 of these regulations, the formula under which the alcohol is to be pre¬ 
pared for such use should also be here stated. 
c District in which the institution is located. 






















243 


Art. 4. Said bond, together with the first application for permit, 
will be deposited by the applicant with the collector of internal rev¬ 
enue for the district where the institution in which the alcohol is to be 
used is located, and said collector of internal revenue will forward 
the original of such bond and application to the Commissioner of 
Internal Revenue, accompanied with his certificate that he has exam¬ 
ined said bond and finds it made in accordance with these regulations, 
and that the sureties therein are sufficient. He will also certify that 
he has examined the matters stated in the accompanying application 
and finds them to be true, and that said application appears to him to 
have been made in good faith. 

Applications and bonds so received will in all cases be noted on 
Record 123 , to be furnished collectors for that purpose , and whenever 
an application for alcohol is made after the first one, the collector will 
certify to the Commissioner of Internal Revenue that the bond re¬ 
mains good, or will notify him of any change affecting the responsi¬ 
bility of the signers. 

In order that unnecessary delays and correspondence may be avoided 
in these cases , collectors will see that all bonds , applications , and 
proofs filed by applicants are prepared strictly in accordance with 
these regulations , before forwarding the same to the Commissioner of 
Internal Revenue .. As the duplicate permit is mailed to the person 
who signs the application , his or her signature and post-office address 
should be plainly and legibly written in order to insure the prompt 
receipt of the duplicate . If in a city , the street and number should 
be given. 

FORM OF APPLICATION*. 

Art. 5. Upon the approval of the bond by the Commissioner of 
Internal Revenue on proof satisfactory to him that the institution is 
entitled to the benefit of the provisions of said section 3297, or the 
said act of May 3, 1878, the principal therein named may from time 
to time make application, in the form hereinafter prescribed, for the 
withdrawal of alcohol as occasion may require: Provided , The penal 
sum of the bond is equal to double the amount of tax on the alcohol 
to be withdrawn, after deducting all outstanding charges on the bond. 
And upon receipt of an application the Commissioner of Internal 
Revenue will transmit the same to the Secretary of the Treasury, with 
a notification of the approval of the bond when the first application 
is forwarded, and afterwards with a reference to the bond under 
which the application is made. 

The application in all cases should specify each package and con¬ 
tents as shown by the original gauge, which packages will, however, 


244 


be subject to regauge on withdrawal. The application will be in the 
following form, viz: 

APPLICATION, FORM 431. 

To the Secretary of the Treasury: 

The undersigned requests permission to withdraw from the a - 

bonded warehouse owned by-, at -, in the- 

district of-, the following-described alcohol which was stored 

in said warehouse on the-day of-, 190—, ft :_ 


Number of 
packages. 

Serial numbers of 
packages. 

Numbers of ware¬ 
house stamps. 

Wine gal¬ 
lons. 

Degree of 
proof. 

Proof gal¬ 
lons. 

Taxable 

gallons. 









for the sole purpose of preserving specimens of anatomy, physiology, 

or natural history belonging to the c -, located at-, in the 

State of-, of which institution the undersigned is the d -, 

or for use in the chemical laboratory of said institution for the fol¬ 
lowing-named purposes: 


(Signed) 


Post-Office Address,--. 

PERMITS. 

Art. C». Upon receipt of the application filed and notice of the ap¬ 
proval of the bond by the Commissioner of Internal Revenue the Sec¬ 
retary of the Treasury will issue an original and duplicate permit in 
each case, the original of which will be forwarded to the collector of 
internal revenue for the district in which the bonded warehouse con¬ 
taining the spirits is located, and the duplicate, having a receipt in 
blank printed on the back of it, will be transmitted to the applicant, 

0 Here insert “ distillery ” or “ general,” as the case may be. 

h If the alcohol is in a general bonded warehouse, here inseert the words “ pro¬ 
duced by-, distiller, in the-district of-.” 

c Here insert the name of the institution for which the alcohol is to be 
withdrawn. 

d President or curator, if an incorporated or chartered institution, and if not, 
then the duly authorized agent. 

c If intended for hospital use, the formula under which the alcohol is to be 
prepared for such use should also be stated. 


































WHO MUST SIGN TIIE RECEIPT, AND SHOULD THEN SEND IT TO THE PERSON 
OR FIRM FROM WHOM TIIE SPIRITS WERE PURCHASED, to be at Once for- 

warded to the distiller, who will immediately hand it to the store¬ 
keeper of the warehouse. If, however, the applicant knows the ad¬ 
dress of the distiller, he may send the duplicate directly to the distiller. 

Art. 7. Upon receipt of the original permit the collector will 
notify the storekeeper at the bonded warehouse from which the 
spirits are to be withdrawn that such permit has been granted, in¬ 
close him a copy thereof, and direct him to deliver the spirits to the 
person named therein, or his duly authorized agent, without the pay¬ 
ment of tax, upon the delivery to such storekeeper and cancellation 
by him of the duplicate permit issued to such person. Such cancella¬ 
tion shall be made bj^ writing across the face of said duplicate permit 
the words u r lhe spirits herein described were delivered to the person 

herein named this- day of-, 190—to be signed by the 

storekeeper. The storekeeper will see that the receipt printed on the 
back of the duplicate is properly tilled up and signed before he de¬ 
livers the spirits. The collector’s order to the storekeeper will be in 
the following form, viz: 

Office of Collector of Internal Revenue, 

- District of the State of --, 

-—-—, 190—: 

Sir : You are hereby directed to deliver the spirits described in the 

application of-to the said-, or his duly 

authorized agent, without payment of the tax, in accordance with the 
terms of the permit granted by the Secretary of the Treasury, a copy 
of which is inclosed. 

-, Collector. 

To Mr.-, Storekeeper. 

CREDIT ON BONDED ACCOUNT. 

Art. 8. The storekeeper at such bonded warehouse will report such 
spirits on his Forms 86 and 87, with the gauger’s report (Form 59, 
revised), as withdrawn, but will state that they were withdrawn 
without the payment of tax, under the provisions of section 3297, 
Revised Statutes, and he will immediately, upon the withdrawal of 
the spirits as above mentioned, transmit the aforesaid duplicate 
permit to the collector, who will note upon the original permit in his 
possession the facts of the cancellation of the permit and the with¬ 
drawal of and receipt for the spirits therein mentioned, and will 


« In case of any shortage or discrepancy, the same will be here noted. 














246 


transmit the permit so received from the storekeeper to the Commis¬ 
sioner of Internal Revenue. 

The collector of internal revenue will take credit for all spirits so 
withdrawn on the appropriate line of his bonded account (Form 
94 a) for the month during which such withdrawal is made. He will 
also make the proper entry on the inside page of that account as to 
the quantity covered by each permit, and will forward each of such 
duplicate permits wdtli his bonded account as a voucher for such 
entry. 

PROOF AS TO USE OF ALCOHOL, FORM 524. 

Art. 9. For the cancellation of the foregoing bond, or for the pur¬ 
pose of obtaining a credit on said bond, a certificate, under oath, and 
substantially in the following form, will be required of the officer 
or officers of the institution under whose direction or supervision the 
alcohol has been used, such certificate to be filed with the collector 
named in the bond, and, if approved, to be forwarded by him to the 
Commissioner of Internal Revenue with his approval indorsed 
thereon: 

I,-, hereby certify that the alcohol described in the 

application of-dated the- day of-, 190—, 

and withdrawn, under bond, from the bonded warehouse of- 

-, in the-district of-, under the provisions of section 

3297, Revised Statutes, for the preservation of specimens of anatomy, 
physiology, or natural history belonging to, or for the sole purpose 

of use in the chemical laboratory of, the° -, was received at 

said institution on or about the- day of-, 190—, and has 

been wholly used under my supervision as * & -of said institution 

for the following-described purposes, viz: c _ 


-, ss: 

Personally appearing--, made oath before me that the 

foregoing statement bv him subscribed is in all respects correct and 
true. 

Dated-,-, 190—. 

-. [seal.] 

c Here insert the name of the institution. 

6 The official designation of the party under whose supervision the alcohol 
was used should be here stated. 

c If used in making or compounding medicinal preparations for hospital 
purposes, such use should be specifically here stated, and the following words 
should be added: “And that no portion of said articles or preparations lias been 
or will he sold to any person whatever 
























247 


EXTENSION OF TIME NAMED IN BOND. 

Art. 10. Where the principal to the bond is unable, from good 
cause, to furnish the required proof within the time specified in his 
bond, an extension of time, not exceeding one-half the period named 
in the bond, may be obtained upon application therefor to the Com¬ 
missioner of Internal Revenue, accompanied by the consent of the 
sureties to the bond to such extension, such application and consent 
to be approved by the collector with whom the bond was originally 
filed. 

The extension asked for must be for a specified time, not exceeding 
that above stated, and the application therefor must set forth the 
reasons why the condition of the bond as to the presentation of proof 
has not been complied with, and must be sworn to; and the accom¬ 
panying consent of the sureties to the bond must be executed under 
seal and witnessed, as in the case of giving an original bond. 

BLANK FORMS FURNISHED BY TIIE DEPARTMENT. 

Art. 11. Blank forms of the application, bond, and proof of use 
herein prescribed, and such forms as relate to the bonded distilled 
spirits account, will be furnished by the Department. Collectors of 
internal revenue who may need such forms should apply for them to 
the Commissioner of Internal Revenue. Hereafter bonds and ap¬ 
plications must be made on these forms. 

WITHDRAWAL OF DISTILLED SPIRITS FROM BONDED WARE¬ 
HOUSE FOR USE OF THE UNITED STATES, FREE OF TAX, UNDER 

PROVISIONS OF SECTION 3464, REVISED STATUTES. 

Section 3464 of the Revised Statutes of the United States provides: 

The privilege of purchasing supplies of goods imported from 
foreign countries for the use of the United States, duty free, which 
now does or hereafter shall exist by provision of law, shall be ex¬ 
tended, under such regulations as the Secretary of the Treasury may 
prescribe, to all articles of domestic production which are subject to 
tax by the provisions of this title. (Title XXXV, Int. Rev.) 

Art. 12. Where distilled spirits, stored in a distillery warehouse or 
in a special or general bonded warehouse, are purchased for use of 
the United States, application for the withdrawal thereof, free of tax, 
will hereafter be made by the head of the Department or head of 
bureau not under control of any Department for which the spirits 
are purchased, which application will be in the following form; 


248 


APPLICATION, FORM 543. 


J 

190—. 


To the Secretary of the Treasury: 

Application is hereby made, under the provisions of section 3464, 

Revised Statutes, for the withdrawal from the- ( ffl ) warehouse 

of- 5 . in the-district of-, of the following-described 

distilled spirits, produced by -, and deposited in said ware¬ 
house on or about the-day of-, 190—: 


No. of pack¬ 
ages. 

Serial Nos. pack¬ 
ages. 

Serial Nos. W. II. 
stamps. 

Wine gallons. 

Degree of 
proof. 

Tax gallons. 








The above-described spirits have been purchased or contracted for 
by the Department for the use of the United States at a price not 
including the tax thereon, or any part thereof, and are to be delivered 
to-( 6 ) for shipment to-( c ) at-.( d ) 


Art. 13. Upon receipt of the foregoing application, duly executed, 
a permit for the withdrawal of the spirits will be issued in duplicate, 
the original of which will be forwarded to the collector of the district 
and the duplicate to the Department making the application for 
withdrawal, which Department will transmit it to the party to whom 
the spirits are to be delivered for shipment, who will sign the receipt 
indorsed on the back thereof, and deliver the same to the collector 
of internal revenue. 

Art. 14. Upon the receipt of the original permit, and before the 
delivery of the spirits to the designated person, the collector will 
require of such person a transportation and delivery bond, in dupli¬ 
cate, with satisfactory sureties, and in a penal sum of not less than 

a Distillery, special or general, as the case may be. 

h Here state name of contractor or distiller to whom the spirits are to be 
delivered. 

c Here state name of Government officer to whom the spirits are to be 
delivered. 

d Here state place where the spirits are to be delivered. 





























249 

the tax on the spirits to be withdrawn, which bond will be in the 
following form: 

bond form 544. 

For the transportation and delivery of spirits withdrawn from 
warehouse under the provisions of section Revised Statutes. 

Know all men by these presents that we,-, of-—, as 

principal, and-, of-, and-, of-, as sureties, 

are held and firmly bound unto the United States of America in the 

full and just sum of - thousand dollars, for the payment 

whereof we bind ourselves, our heirs, executors, and administrators, 
jointly arid severally, firmly by these presents. 

Witness our hands and seals this-day of-, 190—. 

A\ hereas the above-bounden principal has sold and agreed to 
deliver to the United States the following-described spirits produced 

by-, and now stored in - («) warehouse in the- 

district of--, which spirits are to be withdrawn from said ware¬ 

house, free of tax, under the provisions of section 3464 of the lie- 
vised Statutes of the United States, to wit: 


No. of pack¬ 
ages. 

Serial Nos. pack¬ 
ages. 

Serial Nos. W. H. 
stamps. 

Wine gallons. 

Degree of 
proof. 

Tax gallons. 








Now, therefore, the condition of this obligation is such that if the 
above-bounden principal shall safety deliver, or cause to be delivered, 

the said spirits to-, ( * & ) at ———, ( c ) and shall within thirty 

days from the date hereof furnish to the collector of internal revenue 

for the-district of-, a certificate of the said-( 6 ) 

showing the due delivery of the spirits to him; and shall on demand 
well and truly pay or cause to be paid to the said collector the tax 
on all such spirits so withdrawn as aforesaid and not so delivered, 
then this obligation to be void; otherwise to remain in full force and 
virtue. 

-- > [seal.] 

- . [seal.] 

- . [seal.] 

Signed, sealed, and delivered in the presence of— 


a Distillery, special or general, as tlie case may be. 

6 Name of Government officer to whom spirits are to be delivered. 
c Place where spirits are to be delivered. 
































Art. 15. In view of the fact that distilled spirits purchased in bond 
by the United States may, by the terms of the contract, be deliverable 
at various times and in such quantities as may be ordered by the De¬ 
partment for which the same is intended, distillers, or parties con¬ 
tracting to deliver such spirits, may, in lieu of the foregoing bond, 
execute a continuing transportation and delivery bond, in the follow¬ 
ing form: 

BOND NO. - 

For the transportation and deli eery of distilled spirits from bonded 
irarehouse under the provisions of section SJGJ? Revised Statutes. 

Know all men by these presents that we, - -, of 

-, as principal, and-, of-■, and 

-, of-, as sureties, are held and firmly bound 

unto the United States of America in the full and just sum of- 

thousand dollars, lawful money of the United States, for the payment 
whereof we bind ourselves, our heirs, executors, administrators, suc¬ 
cessors, and assigns, jointly and severally, firmly by these presents. 

Witness our hands and seals this-day of-, 190—. 

Wliereas the above-bounden principal has sold, or agreed to deliver, 
to the United States certain distilled spirits now deposited, or to be 
hereafter deposited, in the following-described bonded warehouse— 

in the - collection district of-, to wit, -* 

bonded warehouse Xo. -, of - -; -* bonded 

warehouse Xo.-, of-;- b bonded warehouse 

Xo.-. of-, which spirits are to be withdrawn, from 

time to time, from said warehouse—. free of tax. under permits to 
be issued by the Secretary of the Treasury, pursuant to the provisions 
of section Mfil of the Kevised Statutes of the United States. 

Xow. therefore, the condition of this obligation is such that if the 
above-bounden principal shall, as to all such spirits so sold and as to 
all spirits hereafter so sold and withdrawn from either of said ware¬ 
houses, safely deliver the same, or cause the same to be delivered, to 
the person or persons, and at the place or places, designated in said 
permits, and shall as to each lot of spirits so withdrawn, and within 
thirty days from the date of each such withdrawal, furnish to the 
collector of internal revenue for the district aforesaid the evidence 
prescribed by the Secretary of the Treasury showing the due delivery 
of such spirits to the person or officer so designated in the permit for 
withdrawal, and shall on demand well and truly pay, or cause to be 
paid, to the said collector the tax on all such spirits so withdrawn 
as aforesaid and not so delivered, then this obligation to be void, 


° Not catalogued. 

b Distillery, special or general, as tlie case may be. 




























251 


otherwise to remain in full force and virtue. And it is hereby ex¬ 
pressly stipulated and agreed that this obligation shall extend to and 
include all spirits receiped for by the above-bounden principal, or 
his agent, on the permits so issued for the withdrawal of such spirits 
from said warehouses, or either of them. 

-. [seal.] 

-. [seal.] 

-. [seal.] 

Signed, sealed, and delivered in presence of— 

The foregoing bond must be given in duplicate, with approved 
sureties, and in a penal sum at least equal to the tax on the largest 
estimated quantity of spirits which will be withdrawn thereunder 
and in transit at any one time. Collectors accepting such bonds will, 
therefore, debit each such bond with the tax on all spirits removed 
thereunder, and credit the bond with the tax on all spirits so removed 
and duly accounted for. Where, by reason of the outstanding charges, 
the bond is insufficient to cover further withdrawals, a separate bond, 
Form 544, will be required. \ 

Art. 16. Upon execution of either of the foregoing bonds, and on 
payment of tax on any excessive loss ascertained on regauge of the 
spirits, the collector will indorse on the duplicate permit the follow¬ 
ing notice and order to the storekeeper, provided the receipt on such 
duplicate permit has been duly signed by the party to whom the 
spirits are to be delivered, as provided in article 13: 

Office of Collector of Internal Revenue, 

- District of -, 

--, 190—. 

To Storekeeper -: 

A good and sufficient transportation bond for the within-described 

spirits having been filed, and the tax on - gallons deficiency 

having been paid, you will deliver the said spirits to - -, 

free of tax, on presentation of the within permit issued by the Secre¬ 
tary of the Treasury. 

-, Collector. 

Upon the delivery of the spirits the storekeeper will indorse on the 
duplicate permit the following: 

The within-described spirits w r ere delivered to-on the 

-day of-—, 190—. 

-, Storekeeper. 

The duplicate permit when so indorsed by the storekeeper will be 
returned by him to the collector. 





















252 


- Art. IT. When the spirits are to be transported by a common 
carrier the collector of the district will require of the shipper dupli¬ 
cate bills of lading covering the spirits from the point of shipment to 
their final destination, one copy of which, together with the duplicate 
bond and duplicate permit, will be forwarded by him to the Com¬ 
missioner of Internal Revenue, with the bonded account on which 
credit for the spirits so withdrawn is taken. 

Art. 18. For the cancellation of the bond given the following 
certificate of the officer designated in the application for withdrawal 
will be required: 

FORM 5 4 5. 


-, 190—. 

I hereby certify that the following-described packages of distilled 
spirits, withdrawn from bonded warehouse of-, in the-dis¬ 
trict of-, on or about the-day of-, 190—, and con¬ 
signed by-, have been duly received by me, and that on inspec¬ 

tion the same are found to contain spirits of the proof and quantity 
below stated: 


No. packages. 

Serial Nos. packages. 

Degree of proof. 

Wine gallons. 








Approved: 


On receipt of the foregoing certificate the collector will credit the 
bond with the spirits so received, and will forward such certificate to 
the Commissioner of Internal Revenue. 

In case of any noticeable discrepancy between the quantity shipped 
and the quantity so received, the collector will proceed to collect the 
tax on such deficiency from the shipper. 

Art. 19. The spirits withdrawn from warehouse under the pro¬ 
visions of this circular will be reported by the storekeeper on Forms 
86 and 87 and by the collector on his bonded account, as in case of 
spirits withdrawn for scientific purposes under the provisions of 
section 3297, Revised Statutes, article 8. 


a Unless the certificate is issued by the head of the Department or Bureau the 
same will be approved by that officer. 






















253 


WITHDRAWAL, BY SAMPLES, OF DISTILLED SPIRITS, OR OTHER 

TAXABLE ARTICLES, FOR USE OF THE UNITED STATES, FREE 

OF TAX, UNDER THE PROVISIONS OF SECTION 3464, REVISED 
STATUTES. 

Art. 20. Where samples of bonded distilled spirits or other taxable 
articles are desired for the use of the United States, free of tax, appli¬ 
cation therefor should be made under the provisions of section 3164, 
Revised Statutes, and in form similar to that prescribed for the with¬ 
drawal of distilled spirits in original packages. The samples desired 
should be fully described as to kind, quantity, and number; and, when 
practicable, the name of the manufacturer, the collection district and 
place of storage, and, in case of distilled spirits, the particular 
package or packages from which such samples are to be taken should 
be stated in the application. 

Where the required samples are to be procured from the same 
manufacturer, in the same collection district, permits in duplicate will 
be issued, as in the case of withdrawal of distilled spirits in original 
packages; and the duplicate permit, on which the receipt of the appli¬ 
cant should be indorsed, will be accepted by the collector of the 
district as his authority for delivering the samples therein described, 
and will be used as a voucher for the credit to be given the manufac¬ 
turer on account of the samples so delivered. 

Where, however, the samples applied for embrace articles of various 
kinds, grades, or manufacture, the permit in such case will be for¬ 
warded to the Commissioner of Internal Revenue, who will issue the 
necessary instructions to the respective collectors for obtaining and 
forwarding such samples; and to insure the forwarding of the same 
the application made should state that the necessary expenses in pro¬ 
curing and forwarding such samples will be paid on presentation of 
proper vouchers. 

Where sealed samples, or samples to be taken under the personal 
supervision of a Government officer, are desired the application 
should so state. 

J. B. Reynolds, 

Acting Secretary of the Treasury. 



INDEX. 


A. 

Abatement of taxes : Page. 

Deficiencies in production_ST-03, 222-224 

Excess of materials_ 87-93 

Spirits destroyed by casualty_ 222-224, 233-23S 

Accident, unavoidable, at distilleries_57, S7-90 

Alcohol: 

Commercial_ 102 

Definition of_ 3,1G2 

Quantity in proof spirits__ 4 

Vapor of, used in manufacture of vinegar_4, 22G-230 

Withdrawal for scientific purposes_SI, 174, 23S-247 

Allowances for— 

Loss of spirits in warehouse_156-159 

Wantage _151,152 

Apparent proof spirits: 

Entered in book_198,199 

Marked, how_ 1S1 

Reported, how__101,105 

Application for— 

Approval of warehouse_ 31. 32 

Regauge of spirits_ 77-80 

Appointment of— 

Gaugers_ 138 

Storekeepers and storekeeper-gaugers_ 3G-3S 

Assessments: 

Commissioner to make_ 83, 219 

Deficiencies against fruit distillers-219-221 

Deficiencies in production and excess material used- 83-87 

Discrepancy in gauge-189,190 

Excess of spirits in casks-189,190 

Release from, in case of destruction of spirits- 90-92 

Tax on brandy produced and not accounted for- 221, 222 

" Under section 3309 to be liens- 4 

Assignment of— 

General storekeepers- 43, 44 

Storekeepers- 3S-42 

Storekeeper-gaugers to separate duties of storekeeper or gauger__ 43 

Assistants designated to aid in making surveys- 19, 20, 208, 209 

13 . 

Bond: 

Withdrawal of alcohol from, for scientific purposes--23S-247 

Withdrawal of spirits from, for exportation- SI 


Withdrawal of spirits from, for removal to manufacturing ware¬ 
houses_ 


( 255 ) 



































256 


Bonds: 

Acknowledgment_ 

Attestation _ 

Corporations, sureties on- 

Distillers’ ___ 

Execution of_ 

Gaugers’_ 

Leaseholders’ in lieu of consent- 

Storekeepers’_ 

Storekeeper-gaugers’_ 

Warehousing_ 

Books: 

Distillers’_ 

Storekeepers’_ 

Transcripts from_ 

Wholesale dealers’ and rectifiers' 
Brandy, distillation of_ 


Page. 

_ 74 

__ 74 

25, 29, 74, 212, 213 
__ 25-28, 212, 213 

_ 20 

_ 139 

_ 29,30 

__ 30 

_ 37 

_44,71-70 

_ 55,200,202,213 

_ 47-49 

_ 202,203 

_ 195-200 

_ 204 


C. 

Capacity: 

Changes in__ 00-02 

Distilleries, how determined_ 19-24, 208-212 

Enlarging_ 03 

Casks: 

Capacity of, for distilled spirits_ 153,100,1G4 

Containing 5 or more gallons to he stamped_ 134,188,189 

Form, size, and material of___ 1SS 

Marking and branding of_159-1S4 

Serial numbers of, in warehouse_ 47,102 

Stamps and brands on, to be effaced when emptied_134-130 

Stamps and brands on, not to be obscured_ 134 

Stand_188,189 

Varieties of_ 153 

Casualty : 

Defined_._._ 234 

Remission of tax on spirits lost by_ 233-23S 

Caution notices, on casks_132,133 

Champagne, tax on imitation_ 230-232 

Change of—• 

Name by distiller_ 11,12 

Package by retail liquor dealer_ 128 

Package by wholesale liquor dealer_122.123 

Package for export_ 171,172 

Package in distillery, special or general bonded warehouse_174-170 

Persons interested in distilling business_ 11,33 

Title to distillery property_ 10,11 

Cistern room: 

Construction of_ 13-15 

Custody of_ 15 

Cisterns: 

High wines__•__ 13 

Rules for gauging-153,154 












































257 

Chums: • Page 

Remission of tax on spirits destroyed in distillery warehouses_ 233-238 

Remission of tax on spirits destroyed in receiving cistern_ 238 

Collectors: 

Accounts with rectifiers_109-111 

Applications for hydrometers to be made by_142,143 

Duties of gaugers under supervision of_ 140 

Examine distilleries before operations commence_ 15,16 

Issuing stamps before payment therefor_ 133 

Keep record of errors on gaugers’ returns_ 188 

Liability for lack of diligence as to warehousing bonds_ 75 

Make requisition for locks and seals_ 69, 71 

May refuse to approve distillers’ bonds_ 2S, 29 

Report of spirit stamps_._113,114 

Reports of gauge to be examined by_187,188 

Responsibility for issue of spirit stamps_ 133 

Commencement of work after approval of distillers’ bonds_ 56 

Commencement of work after suspension_ 59 

Commercial: 

Gauging by internal-revenue gaugers_ 186 

Gauge marks_ 1S5 

Compound liquors sold as wine or substitute for wine_ 230-232 

Condensers used in manufacture of vinegar_ 226-229 

Construction of— 

Cistern rooms_ 13,14 

Distilleries_ 12,13 

Meal room_ 15 

Redistilling or rectifying room_ 13 

Control of warehouse_ 34, 35 

Corporations, sureties on bonds_ 25-27, 74, 212, 213 

Correction of volume: 

Fractions, how treated_152, 153 

How made_152,153 

Marked on casks_152,153 

D. 

Dealers: 

Retail liquor, defined._ 127 

Wholesale liquor, defined- 196 

Deficiencies: 

Assessments for_ 83-87, 219-221 

Statutory relief from_ 87-93, 222-224 

Destruction of stamps on packages of spirits when emptied-134-136 

Detention of spirits, case of discrepancy in gauge-189,190 

Diligence, defined- fiO 

Discontinuance of warehouse- 35, 36 

Distance : 

Between distillery and rectifying house-7,66,95 

Between vinegar factory and distillery or rectifying house. 95, 226, 229, 230 
Distilled spirits: 

Abatement or refunding of taxes when destroyed by casualty- 233-238 

Absence of marks and brands cause of forfeiture- 134 

Access to, in warehouse- 34, 35 

56815—08-17 










































258 


Distilled spirits—Continued. 

Affixing and canceling stamps upon- 

Allowance for loss of, in warehouse_ 

Applications for restainping- 

Assessment for deficiency in production of. 
Assessment for excess of, found in cask— 

Change of packages for export_ 

Containing saccharine matter_ 

Defined_ 


Page. 

_136,137 

_ 76, 77, 156-159 

_115,116 

_ 83-87,219-221 

_189,190 

_ 171-173 

100-105, 107, 108, 127, 181 
_ 3 


Deposit of, in distillery warehouse_ 71-74 

Deposit of, in receiving cisterns_ 63 

Drawing off, gauging, and marking casks for entry into warehouse- 159-163 

Enumeration and description of stamps for_111-113 

Entry of, in book Form 52_ 95, 195-200 

Entry of, in book form 52c, revised_ 55, 200-202 

Forfeited, sold by collector_ 130 

Forfeited, sold by United States marshal_129-131 

Form, size, and material of packages for__ 188 

Fractional gallons, how taxed_3,155,156 

Gauging and stamping at distilleries_ 159, 160, 176, 214, 215 

Gauging and stamping at rectifiers___179,180 

Officer to detain packages of, cases of excess_ 189 

Production deemed to commence_ 56 

Reduction in proof_190-195 

Regauge on withdrawal for export_170-173 

Regauge on withdrawal for scientific purposes, etc_ 174 

Regauge on withdrawal tax-paid__167-169 

Responsibility of collectors for stamps for_ 133 

Samples from packages_ 35, 253 

Stamps and brands on empty packages to be effaced_134-136 

Stamps for, intrusted to gaugers_106,133 

Stamps, imitation on packages of_ 132 

Stamps for, on payment of tax_111-113, 117, 118, 120, 168, 218 

Stamps for, when deposited in warehouse_112, 116, 117 

Stamps for, when exported_*_112, 118, 119, 170-173 

Stamps for, wffien forfeited__130,133 

Stamps for, when imported_112, 119, 120 

Stamps for, when rectified_ 112, 121, 122, 128, 179-181 

Stamps for, when reimported_ 120 

Stamps for, when put up by wholesale liquor dealers- 112,116,128,183,184 

Stamps for, when sold on distraint_130,131 

Withdrawal of, for use of the United States_ 247-253 

Distilled water, removal of_ 65 

Distillers: 


Afford facilities for examination of premises_ 67 

Application by, for regauge_ 76-81 

Assessments against, for deficiency and excess_ 83-87, 219-221 

Bonds of-_- 25-28,212,213 

Bonds of (warehousing)_ 71-76 

Books to be kept by- 55, 200-202, 213, 214 

Carrying on business after notice of suspension_ 57 

Change of name_ 11,12 

Definition of_ 4 

Entry for deposit_ 71-73 




















































259 


Distillers—Continued. Page. 

Forbidden to commence business until law is complied with_ 15, 68 

Furnish plan of distillery_ is’ 19 

Notice of_ 6-10 

Operating small distilleries exempted from certain provisions of 

law- 16 

Operating distillery on Sunday_ 67 

Paint and keep pipes painted_ 12 

Provide office accommodations_ 15 

Render monthly account_ 55, 56, 215, 216 

Request for regauge_76-81,164 

Title of, to distilling premises_ 7-9 

Using materials or removing spirits in absence of storekeeper_ 67 

Distilleries: 

Changes in capacity_ 60-62 

Change in persons operating_ 11 

Change of ownership__ 10,11 

Cistern room and receiving cisterns in_ 13-15 

Commencement of work at_ 56 

Construction of_ 12,13 

Distilling in, on Sundays, forbidden_ 67 

Enlarging capacity of_ 63 

Exemption of small_ 16 

Facilities for examination of_ 67 

Fermenting period at_ 22-24, 59. 60 

Fermenting tubs to be emptied_ 60 

Meal room and hoppers in_ 15 

Not to run without compliance with law and regulations_15,16, 68 

Officers’ right of entry_ 66 

Other business not to be done in_ 66 

Plan of_ 18,19 

Redistillation on premises of_ 63, 64 

Signs, fences, and gates_ 17,18 

Small, inquiry and examination concerning_ 16,17 

Spirit-producing capacity of_ 20-24, 208-212 

Sour mash__ 22, 23, 59 

Storekeeper to be assigned to_ 38-42 

Survey of_ 19-24, 208-212 

Suspension of_ 56-58 

Suspension of. caused by accident_ 57, 58 

Title to premises of_ 7-10 

Distillery warehouses: 

Additions to- 32 

Applications for approval- 31,32 

Bonds for tax on spirits entered___ 72-76 

Certificate of examination- 32 

Change of package in, for export-171-173 

Construction of- 30, 31 

Control of- 34, 35 

Deposit of spirits in-.- 71, 72 

Discontinuance of- 35, 36 

Locks and seals at- 34, 68-71 

Record at, to be kept by the storekeeper- 48-50 

Storekeeper to be. assigned to- 38^12 



















































260 


Distillery warehouses—Continued. Page. 

Withdrawal of spirits from, for export_170,171 

Withdrawal of spirits from, for transfer to manufacturing ware¬ 
house _ 173 

Withdrawal of spirits from, for scientific purposes, etc_ 174 

Withdrawal of spirits from, on payment of tax_167-169 

Withdrawal of spirits from, to general bonded warehouse-164,165 

Distraint: 

Failure to give bond or pay tax_ 72, 75, 76 

Stamping spirits sold on_ 130 

Dumping, notices of, by rectifiers_ 97-103,109 

Duplicate spirit stamps, application for_ 115 

Duties of: 

Gauger_1_:_ 138 

Storekeeper_ 45-47 


E. 


Empty casks or packages, destruction of marks, brands, and stamps 


thereon _ 134-136 

Entry: 

Deposit in distillery warehouse_ 71-73 

Withdrawal_ 76 

Exemptions : 

Fruit distillers from certain provisions of law_ 204-206 

Small distilleries from certain requirements of law_ 16 

Excess: 

Materials used by distillers_ 84-87 

Spirits at rectifiers_110-111 

Spirits over quantity shown by marks on casks_189,190 

Examination of distilleries by collectors_ 15,16 


F. 

False: 

Certificate by gauger_ 100 

Entries in books of rectifiers and wholesale liquor dealers_ 196 

Fees of gaugers._ 138 

Fermenting: 

Capacity of tubs, how determined_ 20-24 

Period at grain and molasses distilleries_ 22-24, 59, 60 

Tubs, opening and closing_ 60-62 

Tubs, record of filling and emptying_ 47, 48 

Tubs, when to be filled and emptied_ 59, 60 

Forfeited spirits: 

Sold by United States marshals_ 129 

Sold by collectors_ 130 

Forms: 


No. 


3. Leaseholder’s bond_ 

14. Distiller’s monthly account. 

15. Fruit distiller’s return_ 

23. Assessment list 23_ 

26. Registry of stills._ 

27a. Distiller’s notice__ 

27|. Notice by fruit distillers. 
27&. Rectifier’s notice_ 


- 8,9 

- 51, 55, 56, 59, 83 

-215,216 

- 189,190, 222, 225, 237 

- 6,207,215,223,229 

6-10,19, 20, 27, 32-34, 63, 66 

- 6, 20, 207, 208 

- 96,97,108 








































261 


Forms—Continued. Page. 

No. 30. Distiller’s bond_ 25-28 

30j. Bond of distiller of brandy_25, 212, 213 

33. Sureties’ affidavit_ 26, 27, 213 

39. Gauger’s bond_ 139 

45. Rectifier’s monthly return_ 106-108, 111, 232 

46. Claims for refunding taxes_ 88, 222, 224 

47. Claims for abating assessed taxes_ 88, 222, 224 

50. Storekeeper’s bond_ 36 

52a. Transcripts from liquor-dealer’s book, spirits received_ 203 

52 b. Transcripts from liquor-dealer’s book, spirits disposed of 203 

59. Gauger’s daily report- 80,116,152,170,187 

59^. Return of gauger of brandy_ 152,186,187, 215-221, 224-226 

80. Distiller’s warehousing bond_ 71-76 

82. Affidavit in case of detached stamps or coupons_ 115 

86. Storekeeper’s daily warehouse report_ 49, 52, 53, 245 

A 86£. Storekeeper’s daily warehouse report (fruit brandy)_ 49 

87. Storekeeper’s monthly warehouse report_ 49, 52, 53, 245 

A 87. Storekeeper’s monthly warehouse report (fruit brandy)_ 49 

88. Storekeeper’s monthly abstract_ 48, 49-51, 56, 65, 83, 84 

88i. Report of time of filling and emptying fermenting tubs 48, 50-52, 56 

90. Collector’s monthly report of tax-paid and export stamps_ 113 

92. Wholesale- liquor dealer’s application for stamp 103,116,124-126,197 
92£. Wholesale liquor dealer’s application for more than one 

stamp_116,124,125 

94a. Part 1. Bonded distilled spirits, account of collectors_ 75, 237, 246 

99. Report of survey of fruit distillery_ 24, 208-212 

105. Certificate of payment of tax on forfeited spirits_ 129 

107. Storekeeper’s monthly salary account_ 148 

110. Permit for the removal of stills_ 5 

118. Gauger’s report of stamps used_ 131 

122. Rectifier’s notice of intention to rectify_ 97-103, 


107,109,110,124,125,187 

123. Report of survey of distillery_ 24 

124. Distiller’s notice of suspension_12, 56-58 

125. Distiller’s notice of resumption_ 57 

126. Distiller’s notice of change in capacity_ 60-62 

127. Collector’s requisition for wholesale liquor-dealers’ stamps- 113 

134a. Report of casualties (monthly)___ 237 

139. Collector’s requisition for tax-paid stamps_ 113 

139£. Collector’s requisition for rectifier’s stamps_ 113 

143. Application for reduction of capacity in a fruit distillery— 220, 223 

145. Report of seals for lock_ 70 

150. Gauger’s monthly bill, fees and expenses_ 148 

152. Report of Government locks, seals, and hydrometers. 70,143,145,148 

160. Collector’s requisition for stamps for imported spirits- 113 

163. Distiller’s receipt for regulations- 224 

175. Collector’s requisition for warehouse stamps—- 113 

177. Collector’s monthly report of stamps other than tax-paid 

and export_ 113 

179. Notice and request for regauge, etc., entry for withdrawal 

of spirits from bonded warehouse- 77-80 

192. Report of examination of fruit distilleries- 221 








































262 


Forms—Continued. Page. 

No. 235. Transportation and warehousing bond for fruit brandy in 

special bonded warehouse_ 73 

237. Rectifier’s notice and gauger’s return- 103-106,180,186,187 

240. Entry for deposit_ 71 

241. Recommending changes in assignment of storekeepers- 40-43 

242. Collector’s monthly report of assignment of gaugers, store¬ 

keepers, and storekeepers and gaugers_ 40, 42, 43 ,140 

262. Collector's requisition for transfer stamps_ 113 

279. Inquiry and examination concerning small distilleries. 16,17, 27, 32 
289. Gauging officers’ monthly report of gauging instruments, 

etc_ 70,145,148-150 

338. Monthly return of wholesale liquor dealer_126,127 

351. Transportation and warehousing bond (general bonded 

warehouse):_ 73 

354. Storekeeper’s daily report (entries, in general bonded ware¬ 

houses)_ 49 

355. Storekeeper’s daily report (withdrawals from general 

bonded warehouses)_ 49 

356. Storekeeper’s monthly report (general bonded warehouses). 49 

359. Distiller’s annual warehousing bond__ 74-76 

362. Collector's recapitulation of spirits warehoused and re¬ 
warehoused at each distillery_:_ 75 

364. Report of casualties in distillery warehouses_ 237 

370. Transcript of entries on Form 52c_ 203 

381. Notice, etc., as to spirits to be regauged at expiration of 

time limited by statute_ 77-79 

412. Schedule of gaugers’ returns, Form 59£, and report of 

fruit brandy tax-paid, etc_ 224, 225 

431. Application for withdrawal of alcohol for scientific pur¬ 

poses _ 1 __>_ 244 

432. Bond for withdrawal of alcohol for scientific purposes_ 241 

463. Notice of intention to reduce proof of distilled spirits, and 

return of gauger thereon_191,192 

524. Proof of use of alcohol withdrawn for scientific purposes.. 246 

543. Application for withdrawal of spirits for use of the United 

States_ 248 

544. Bond for withdrawal of spirits for use of the United States. 249 

545. Certificate of receipt for withdrawal of spirits for use of 

the United States_ 252 

6983. (Office Form.) Notice to fruit-brandy distillers of defi¬ 

ciencies _ 222 , 223 

6984. (Office Form.) List of proposed assessments against dis¬ 

tillers _ 88 

12. (Book No.) Distiller’s purchase book_ 55 

13. (Book No.) Distillation book_ 55 

16. (Book No.) Record of storekeeper at rum distillery_ 48 

17. (Book No.) Record of storekeeper at registered distil¬ 

lery - 47, 48, 51, 64, 65 

174. (Book No.) Supplement to No. 17_ 48 

A 17. (Book No.) Record of storekeeper at special bonded ware¬ 
house (daily)_ 49 

18. (Book No.) Record of storekeeper at distillery warehouse 49 
































263 


Forms—Continued. Page. 

No. A 18. (Book No.) Record of storekeeper at special bonded ware¬ 
house (distillery)_ 49 

25. (Book No.) Distiller’s yeasting book_ 55 

254. (Book No.) Fruit distiller’s book_ 213 

28. (Book No.) Distiller’s record of workmen_ 55 

39. (Book No.) Record of rectifying business_109-111 

41. (Book No.) Account of stamps issued to wholesale liquor 

dealers-124-126 

45. (Book No.) Collector’s record of registered distilleries_ 62 

46. (Book No.) Register of fruit distilleries_ 207 

50. (Book No.) Record of fruit brandy gauged and disposed 

of- 225 

52. (Book No.) Book to be kept by wholesale liquor dealers 

and rectifiers- 95,195-200,202 

52c. (Book No.) Book to be kept by distillers as wholesale 

liquor dealers- 55,194,200-202 

58. (Book No.) Storekeeper’s daily record at distillery ware¬ 
houses_ 49 

64. (Book No.) Rectifier’s record_ 104,109,110 

68 . (Book No.) Special file book of Forms 59 and 594_ 80 

85. (Book No.) Special record at small distilleries_ 50 

88 . (Book No.) Record of storekeeper at general bonded 

warehouse_ 49 

99. (Book No.) Collector’s record of gauging instruments, 

locks, etc_149,150 

Filling spirit stamp by hand stamp_ 132 

Forfeited spirits, how stamped and marked_129-131 

Fruit brandy: 

Distillation of_ 204 

Gauging, marking, and stamping_ 120,176-179, 214, 215 

Report of disposition of, after gauge_ 224, 225 

Stamps for_120, 218 

Tax, when to be paid_217, 218 

Tax to be assessed in case of deficiency_219-221 

Tax to be assessed when not accounted for- 221, 222 

Fruit distillers: 

Brandy for their own consumption, must be marked and stamped- 218 

Bond to be executed by_212, 213 

Book to be kept by--213, 214 

Designated place of deposit_ 208, 215 

Exempted from certain provisions of law- 204-206 

Gauging for_ 176-179. 214, 215 

Must aflix tax-paid stamp before removal- 218 

Must stamp brandy distilled on shares or for another person- 219 

Notice of intention to distill- 207, 208 

Payment of tax by-,-217,218 

Return to be made by--215, 216 

Stills to be registered, stamped with a number, and surveyed- 207-212 

Time operated arrived at- 220 

Fusel oil, removal of, from distilleries- 64, 65 








































264 


G. Page. 

Gallon, fractional, of distilled spirits, liow taxed-3,155,156 

Gates of distillery, keys to be furnished by distiller- 17,18 

Gaugers (customs) to gauge and stamp imported spirits_119,120 

Gaugers (internal revenue) : 

Affixing or canceling stamps contrary to law_ 133 

Allowance for wantage made by_151,152 

Allowance made by, for loss of spirits in bond_ 76-82,156-159 

Appointment, oath, and bond of_138,139 

Assigned to duty, how_ 139, 140 

Certificate of, on Form 122_ 100 

Classification of casks by_ 153 

Correction of volume made by_ 152 

Errors of, on returns, to be recorded_ 188 

Fees and expenses of_ 138 

Forbidden to gauge spirits for dumping until directed on Form 122_ 98 

Furnishing extra copies of official reports_ 186 

General duties of_138,139 

Gauging and marking spirits in warehouse on request of distiller_164,167 

Instruments used by_ 141-147 

May be transferred or suspended_ 140 

Marking, branding, and stamping of casks of distilled spirits by, on 

entry into warehouse_1_159-164 

Marking fruit brandy_176-179 

Marking on removal from distillery warehouse to general bonded 

warehouse-164,165 

Marking on removal from one general bonded warehouse to an¬ 
other-166,167 

Marking on withdrawal from warehouse on payment of tax_167-170 

Marking on withdrawal when capacity has been determined by 

weighing-169,170 

Marking on withdrawal of spirits for scientific purposes, for manu¬ 
facture of sugar from sorghum, or for use of United States free 

of tax_ 174 

Marking on withdrawal for exportation_170,171 

Marking on change of package for exportation_171-173 

Marking on transfer to manufacturing warehouse_ 173 

Marking on change of package to prevent leakage_174-176 

Marking of packages filled on premises of wholesale liquor dealer— 183,184 

Marking rectified spirits_181-183 

Purpose appointed for_ 138 

Receiving cisterns and room to be in charge of_ 15 

Reports of stamps used_ 131 

Reports of, to be examined by collectors_187,188 

Responsible for use of hydrometers_ 143 

Responsibility of, in control of stamps_ 106 

Stamps intrusted to_ _ _ 100 131 

Two to gauge casks containing excess of spirits_ 189 

Under whose direction services to be rendered_ 140 

Unofficial occupations of_ 185 ? 186 

Gauging: 

Allowance for loss while in warehouse_ 76-82,156-159 

Allowance for wantage_ 151 -^ 52 ,161 











































265 


Gauging—Continued. Page. 

Correction of volume- 152,153,160,161 

Instruments, Commissioner to prescribe_ 141 

Instruments, description of_ 141-146 

Instruments, how procured_ 141,142,144-146 

Instruments, use of_141-147 

Marking, branding, and stamping distiller’s packages_159-164 

Marking, branding, and stamping packages on withdrawal from 

distillery warehouse on regauge_167-169 

Marking, branding, and stamping packages on withdrawal for 

exportation_170-172 

Marking, branding, and stamping packages on withdrawal for 

transfer to manufacturing warehouse_ 173 

Marking, branding, and stamping packages on change of package 

to prevent leakage_174-176 

Marking, branding, and stamping packages of fruit brandy. 176-179, 214, 215 

Marking, branding, and stamping rectifier’s packages_179-183 

Marking, branding, and stamping packages on change of pack¬ 
age for export-171-173 

“ No proof ” or “ apparent proof ” spirits, how marked and 

reported___'_ 100,101,104,105 

Parties for whom spirits are gauged to furnish help, etc_ 137 

Rule for finding capacity of casks_ 153 

Rule for cisterns and tubs_153,154 

Two gaugers to perform in case of taxable excess_189,190 

When the capacity of the cask was determined by weighing_169,170 

When to be performed by gauging rod_._143,144 

When to be performed by wantage rod___ 170 

When to be performed by weighing_143,144 

General bonded warehouses: 

Removal of spirits to, from distillery warehouses- 35, 36 

Removal of spirits from one to another- 35, 36,166,167 

Gristmills to be separated from distilleries- 66 

II. 

Hand stamps, use of, in filling out spirit stamps- 132 

Hydrometers: 

Adopted for use by Commissioner-- 141 

Furnished to gaugers, how- 142 

Gaugers responsible for- 143 

Procured, how_ 142 

I. 

Imitation stamps for distilled spirits- 132 

Imitation wine: 

Stamps for___:- 232 

Tax on_ 230-232 

Imported liquors: 

Neglecting to destroy stamps and brands on-135,136 

Stamps for-H9,120 

Imported spirits: 

Stamping, marking, and branding of-119,120 

Stamps for_ 112,119,120,123,124 






































266 


Instruments for gaugers : Pa & e * 

Description of_141-147 

Procured, how_ 141-146 

Responsibility for-143,146 

Use of_141-143,146 

K. 

Keys to locks, custody of: 

Cistern room_ 15 

Distilleries__13,15, 69 

Warehouse_ 34, 69 


Jj. 


Labels on casks of distilled spirits_ 132 

Leakage: 

Allowance for, on regauge_156-159 

When excessive, spirits to be withdrawn from warehouse-72, 81, 82 

Leaseholder’s bond in lieu of consent_8, 9, 29, 30 

Liens: 

Assessments for deficiencies and for excess of material to be- 4 

Tax on spirits to be_^-:--- 4 

List of rectifiers to be forwarded by collectors- 95 

Locks for distilleries: 

Accounted for, bow- 70, 71,148,149 

General provisions concerning--- 68-71 


M. 

Manufacturers of stills: 

Definition of, and special tax from_ 5 

General provisions and exemptions concerning_ 5 

Marking and branding casks of distilled spirits. (See Gaugers.) 

Marks on casks must not be covered or obscured_ 134 

Marshals, United States, sale of forfeited spirits by__ 129 

Mash, wort, or wash not to be made elsewhere than in distillery_ 66 

Meal room, construction of_ 15 

Molasses distillery: 

Capacity of, bow estimated_ 23, 24 

Fermenting period at- 22-23, 59, 60 


N. 


Name under which distillery operated, change of_ 11,12 

No proof spirits: 


Defined-100,101,104 

How entered in book, Form 52_ 198 

How marked_ 181 . 

How reported-101,105 

Notice: 


Fruit distiller (Form 27J) 


6, 20, 207, 208 


Grain or molasses distiller (Form 21a) _ 6-12,19,20,27,32-34,51,63,66 


Rectifier (Form 27ft) 
Rectifier (Form 122) 
Rectifier (Form 237) 


- 96, 97,108 

97-103,107,109,110, 124,125 
103-107,109,110,180,186,187 



































267 


Numbering casks or packages: Page. 

Distillery warehouses_ 47,1G2 

Fruit brandy_ 224, 225 

O. 

Oath: 

Distiller’s as to correctness of return_ 56, 216 

Distiller’s as to correctness of transcript_ 203 

Gauger’s_ 139 

Rectifiers’ as to correctness of return or transcript_ 202, 203 

Storekeeper’s_ 36 

Wholesale-liquor dealer’s as to correctness of return or transcript_ 126, 202 

Officers (internal revenue) : 

Cautioned as to use of stamps_ 129,132,133 

Right to enter any distillery_ 66, 67 

Unlawful pursuits of_ 68 

Ownership, change of: 

Distilleries-10,11, 33, 34 

Rectifying establishments_ 96,108 

P. 

Packages for distilled spirits. (See Casks; Distilled spirits) : 

Change of_ 122,123,128,171,172,174,175 

Containing 5 or more gallons to bear stamps_122,134 

Empty, stamps, marks, and brands on to be destroyed_134-136 

Form, size, and material of_ 1S8 

Marking and branding of. (See Gaugers.) 

Use of as stand casks_188,1S9 

Pay and traveling expenses: 

Detail by the Commissioner of gaugers, storekeepers, etc_ 54, 55 

Transfer of storekeepers and storekeeper-gaugers_ 54 

Permits for removal of stills- 5 

Plan of distillery, how to be made and disposed of- 18,19 

Proof, reduction in of spirits in distillers* original packages— 186,187,190-195 
Proof gallons, tax to be determined by except when spirits below proof- 3,155 
Proof spirits, definition of- 4 

R. 

V 

Rate of tax on distilled spirits- 3,155 

Receiving cisterns: 

Number required at distillery- 13,14 

Spirits to be deposited in--- 13 

Rectifiers: 

Affidavit of, where stamp has been mutilated- 99 

Book, Form 52, to be kept by- 95,195-200 

Carrying on business with intent to defraud the United States, 

penalty_ 94 

Carrying on business within 600 feet from distillery or vinegar 

factory prohibited- 66, 95 

Casks or packages filled by- 103,104,183 

Definition of___ 93, 94,122,196 

Excess in quantity of spirits at houses of- 111 

Excess of spirits shown on regauge at houses of-189,190 



































268 


Rectifiers—Continued. Page. 

Facilities for examination of premises to be furnished by- 94 

List of, to be sent Commissioner- 95 

Notice of completion of rectification by, Form 237- 103-107,180 

Notice of intention to carry on business, Form 27b- 96, 97,108 

Notice of intention to rectify, Form 122- 97-103,107,109,110 

Purchase by, of spirits in quantities of more than 20 gallons not 

permitted except in certain cases_ 94 

Purchasing, receiving, or rectifying spirits on which tax has not 

been paid, penalty_ 94 

Record 39_ 109-111 

Record 64_ 104,109,110 

Returns of, Form 45_ 106-108, 111 

Right of officers to examine premises of_ 67, 94 

Sign of_ 17, 94 

Special tax of_ 95 

Stamps for product of_ 112,121,122,128,179-181 

Stills of, to be registered_ 97 

Transcripts of book, Form 52, to be made by_ 95, 202 

Rectification, what constitutes__ 93,121, 128,196 

Rectified spirits: 

Casks to be gauged and stamped_ 121,122,179-181 

Definition of_121,128 

Marking and branding of_179-181 

Stamps for_1___ 112,121,122,128,179-181 

Redistillation on distillery premises_ 63, 64 

Redistilling or rectifying room_ 13 

Reduction of capacity at distillery_ 60-62 

Reduction of proof of spirits in original packages_ 186,187,190-195 

Refunding tax on spirits destroyed by fire or other casualty_ 233-238 

Regauge of bonded spirits, when made_ 77-80,155-176 

Registry of stills: 

Penalty for failure to make__ 6, 207 

Regulations concerning_ 6, 97, 207, 229 

Reimported spirits_,_ 120 

Remission of taxes. (See Refunding.) 

Removal of mash, wort, or wash from distillery_ 66 

Reports. (See Returns.) 

Requisitions for : 

Gauging instruments_ 141-146 

Locks_ 69 

Seals___ 71 

Stamps_ 113 

Restamping spirits when stamps have been lost or destroyed_115,116 

Resumption of work at distilleries after suspension_ 59 

Retail liquor dealers: 

Change of packages of spirits by_ 128 

Reducing the proof of spirits by_ 128 

Sales by_ 127 

Returns (or reports) : 

Distillers’- 55, 56, 60, 71-73, 83, 215, 216, 219-221 

Gaugers’- 53, 70, 80,116,131,145,148,152,170,187, 215-221 

Gaugers’, to be examined by collectors_ 187 

Rectifier’s- 97-108, 232 














































269 


Returns (or reports)—Continued. 

Resurveys_ 

Storekeeper’s_ 

Surveys_ 

Rule for: 

Finding capacity of casks_ 

Gauging cisterns_ 


Page. 

- 25 

50-53, 59, 65, 70, 83, 84,145,146,148 
_ 24,25 

_ 153,154,160,161 

_153,154 


S. 

Sales of distilled spirits: 

Distrained for taxes_130,131 

Order of court_129-131 

Scales-143-147 

Seals for locks_ 68-71 

Seizure of spirits in case of taxable excess_1_189,190 

Sign of distillers and rectifiers_ 17, 94 

Sour-mash distilleries: 

Capacity of, how estimated_ 20-24 

Fermenting period at_ 22-24, 59 

Sorghum, manufacture of sugar from_ 174 

Special bonded warehouse, withdrawal of spirits from_177-179 

Special record of storekeeper-gaugers at small distilleries_ 50 

Special tax: 

Manufacturer of stills_ 5 

Rectifier_ 95 

Spirits. (See Distilled spirits.) 

Stamps for distilled spirits: 

Affixing, cancellation, and covering of_ 136,137,163,164, 217, 218 

Affixing of, to forfeited spirits_129,130 

Affixing of, to spirits sold on distraint_130,131 

Collector’s monthly reports of_113,114 

Duplicate tax-paid, for packages from which stamps have been lost 

or destroyed_115,116 

Enumeration and description of-111-113 

Export_112, 116, 118, 119, 170-173 

Fruit brandy_ 112, 120, 176-179, 217-219 

Gaugers intrusted with_ 131 

General bonded warehouse-112,117,164,165 

General instructions concerning- 116-126,128-137 

Grape-brandy transfer-112, 113, 178 

Having a money value- 113 

Imitation- 132 

Imported and imported liquors- 112,113,116,119,120,123,124 

Issue of_•-113,133 

Issue of, before payment for, forbidden- 133 

Manner of detaching stamps and coupons for gallons and tenths 

of a gallon-117,118,121 

Must be affixed to all packages containing five gallons or more- 134 

Must not be obscured or covered- 134 

Mutilated, how accounted for- 99 

Not effacing at time of emptying casks or removing-134-136 

Portion of, to be cut out-- 99 

Rectifiers’_ 99, 112, 113, 121, 122, 128, 179-181 

Reimported domestic- 120 












































270 


Stamps for distilled spirits—Continued. Page. 

Requisition for, bow made- 113 

Responsibility for issuing and affixing- 133 

Return of books of, to Commissioner- 114 

Rewarehousing for grape brandy-112,113,116,178 

Signing of_114,117,123,132 

Special bonded warehouse_112,117,178,179 

Stubs of_114,131 

Tax-paid_ 112, 113, 116-118, 120, 129, 130, 168, 169, 176, 177, 179, 217-219 

Use of_ 116-126,128-137 

Use of coupons on rectifiers_112,113,121 

Use of hand stamps in filling_114,132 

Warehouse_112,113,116-118,161,163 

Wholesale liquor dealers’_ 112,113,116,122-126,128,183,184 

Stamps for imitation wines, etc_ 230, 232 

Stand casks: 

Definition of_188,189 

Use of, forbidden_ 189 

Stills: 

Manufacturer of, to pay special tax_ 5 

Manufacturer of, to give notice before removing from place of 

manufacture_ 5 

Set up, to be registered_ 6 , 97, 207, 229 

Use of, forbidden on certain premises_ 66 

Used for distillation of brandy to be numbered_ 207 

Used for production of vinegar- 226-230 

Storekeepers: 

Absence from duty_ 45 

Appointment of_ 36-38 

Assignment to duty of- 10, 32, 38-42 

Assignment to night duty_41, 42, 45 

Compensation of_ 36 

Distillery records of_ 47, 48 

Duties of_ 45-47 

Engaging in other business without permission_ 38 

General, assignment to duty of_ 43, 44 

Have charge of warehouse- 1 ._ 34, 35, 45 

Mashing, distilling, and removal of spirits prohibited in absence of_ 67 

Oath and bond of_ 36 

Pay and traveling expenses when transferred_ 54 

Reports of- 50-53, 59, 65, 70, 83, 84,145-14S 

See that casks in distillery warehouses are properly numbered_ 47 

Sign warehouse and tax-paid stamps_114,117 

Temporary, may be designated by collector___ 39, 40 

Transfer of_ 53 

Warehouse records of_ 48, 49 

Warehouse stamps to be attached in presence of_159,160 

Storekeeper-gaugers (see Gaugers and storekeepers) : 

Appointment and assignment of_ 36-44 

Keep special record at small distilleries_ 50 

May be assigned to perform duties of gauger_ 37, 43,140 

May perform separate duties of storekeeper or of gauger_ 37 , 43 

Regulations extend and apply to_ 38,187 














































271 


Storekeeper-gangers (see Gaugers and storekeepers)—Continued. Page. 

Restrictions as to sureties on official bond of_ 139 

Transfer of- 53 , 54 

Stubs of stamps, entries thereon_ 114 

Suits on warehousing bonds_ 76 

Sunday, process of distilling not to be carried on during_67 

Survey of distilleries: 

How and by whom to be made_ 19-24,208-212 

Report of_ 24, 25 

Suspension of work at distillery: 

Caused by accident_ 57, 58 

Commencement of work after_ 59 

Deduction to be made for_ 58, 59 

Measures to be taken in case of_ 56-58 

T. 

Tax on distilled spirits: 

Abatement of, on spirits destroyed by casualty_ 233-238 

Claims for remission of, on spirits destroyed in receiving cistern_ 238 

Claims for remission of, on spirits destroyed in warehouse_ 235-238 

Lien on_ 4 

Paid, by whom and when_155, 217, 218 

Rate of_3,155,156 

Tax on imitation wines_ 230-232 

Taxable gallons, definition of_3,155,156 

Tax-paid stamps_ 111, 117,118,120,129,130,168,169,177-179, 217-219 

Title: 

Change in_ 10-11 

Statement of present condition of_ 7-10 

Trade-marks and caution notices_ 132 

Transcript: 

Distiller’s book, Form 52c_ 202, 203 

Rectifiers’ and wholesale liquor dealers’ books_ 95, 202, 203 

Tubs: 

Fermenting, how to be placed, marked, etc- 12 

Fermenting, opening and closing- 60-62 

Rules for gauging-153,154 

U. 

Unofficial occupations of gaugers-185,186 


V. 

Varieties of casks defined- 153 

Vinegar: 

Condenser used in manufacture of- 4, 226, 227 

Factories established prior to March 1, 1879--- 229-230 

Manufacture of, within 600 feet of a rectifying house- 226. 229, 230 

Production of low wines at vinegar factories- 229 

Registry of stills set up for production of-- 229 

Regulations concerning vinegar factories--- 226-230 

Surveillance over manufacture of—-.- 228 

Use of alcoholic vapor in the manufacture of- 4, 66, 226-230 







































w. 

Wantage: Page. 

Allowance for_151,152,161 

Equalizing illegal- 82 

Wantage rod: 

Kind prescribed_ 141 

Price of_ 141 

Procured, bow_141,142 

Use of, in regauging spirits in certain cases_ 170 

Warehousing bonds_ 71-76 

Weighing beams and appliances: 

Accounted for by collector on Form 152 revised_ 145,148,149 

Accounted for by gauger on Form 289 revised_ 145,148,149 

Care of, and manner of use_146,147 

Defined_ 149 

How procured_144,145 

Returned to collector on suspension of distillery or discontinu¬ 
ance of business at rectifying houses_ 144 

Where employed_143,144 

Wholesale liquor dealers: 

Application for stamps by_124-126 

Book Form 52 to be kept by_ 195-200 

Change of package by_122,123 

Definition of_,_ 196 

Marking and stamping packages of spirits filled by_183,184 

Monthly return of_126,127 

Reduction and marking spirits on premises of_193,194 

Stamps for_ 112, 113, 116, 117, 122-126, 128, 1<83, 184 

Stamping of imported spirits by_ 123 

Transcripts of books to be made by_ 202, 203 

Wine : 

Addition of distilled spirits to___ 230-232 

Genuine____ 231 

Imitation_ 230-232 

Infusion of carbonic-acid gas into_ 230, 231 

Wine gallons, tax to be collected on, when spirits below proof_3,155,156 

Withdrawal of grape brandy from special bonded warehouse_178,179 

Withdrawal of spirits from warehouse: 

Exportation_ 170,171 

Payment of tax--- 76-80,167-169 

Regauge.- 76-80,167-170 

Scientific purposes and use of United States_ 174, 238-253 

Transfer to manufacturing warehouse_ 173 

Without payment of tax_ 81 

o 

H 283 84 ,4 



















































































































































































































































































































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